By Jean Narcisse Djaha
”Trade is power, but International Trade is Superpower”, says Jean Narcisse Djaha.
Key Points
- History is repeating itself again and again.
- Trade is central to the development of powerful economic relations and can help create
development opportunities. - Trade is a great enabler and can be the best way to protect power and influence.
- Trade can create long-term economic growth and prospects. Trade plays a vital role in the economic development of a nation. It helps create economic
growth and prosperity.
Introduction
This article aims to help leaders understand the sole importance of trade and international, and anticipate future challenges by learning what happened to global powers in the history of humanity, and learn how trade has made and broken powerful nations in the history of mankind.
Spanning over thousands of years, experts continue to research, write, argue, and discover new developments about the relationship between trade and the building of a strong statecraft. And today more than ever, countries are recognizing, questioning, and understanding the full importance of trade in advancing political and economic influence in every part of the world.
Trade Reduction and Empire Collapse in History
Throughout history, every time powerful nations reduced the trade development world to other areas such as geostrategy and military, the world order they lead changes, and another competitor takes the lead automatically.
From 1521 to 1898, also known as the Spanish colonial period, trade became the most powerful for economic and political leadership development for several hundreds of years. The debacle of the empire began when trade was put on the scrap of economic considerations.
In the 17th century, the Dutch Empire allocated most of international trade revenue to its defence. The aftermath is that it collapsed.
In the 18th century, the British Empire lost sight of the importance of global commerce. As a result, it collapsed, and another nation sat on the global leadership seat.
In the 19th, the USSR Empire allocated excessive budgets to its defence, neglecting, and reducing a large portion of trade with other nations. As a result, the empire collapsed in 1990-1991, leading to the dissolution of the Eastern Bloc of the Cold War.
In the 2021st century, history is repeating with many great powers in the global trading system. Breaking and leaving established trade agreements to increase the volume of exchanges between world nations is creating a global power loss to pure competitors such as China and beyond. Indeed, history is repeating itself over and over again.
Trade in international relations
Within the realm of international relations, the conduct of trade is central to the functioning of the system of nation-states that has evolved over time. Several global negotiations, from several business concerns, have been focused on market development, free-trade agreement executions, and many other considerations. The argument that trade is the center of gravity of international relations has been proven over and over again. Expanding international trade, and the lowering of barriers to such trade frequently results in improved international relations, but it can also lead to trade wars and tariff disputes. The export & import of a country depends on international relations. For this, she needs help from the World Trade Organization. Moreover, structural development and transformation are highly dependent on international trade rules, principles, and norms to facilitate the development of new economic activities and non-traditional exports.
Global Trade as the Most Dynamic Force for a Strong Statecraft
Having pointed out the larger international system setting those functions as a backdrop for individual negotiations, it is now useful to examine the role that trade plays in building a powerful statecraft. Basically, one can approach trade with several questions in hand – for example, how many players are involved, what are the challenges, and what are factors affecting trade competitiveness? Understanding these factors and how they intertwine to influence the conduct of international trade is useful, whether one is assessing the importance of trade or developing novel trade strategies.
- Trade and the maintenance of national security
The relationship between global trade and national security and competitiveness has a very long history that may date back to at least the inception of the General Agreement on Tariffs and Trade (GATT) in 1947. Spanning over thousands of years, trade has always been in direct interaction with national security, especially the international trade rules. For example, by the time the Second World War was over, the United States became the most dominant and powerful nation on the planet. The United States led the establishment of the World Trade Organization in 1995 to deal with the global rules of trade between nations and ensure that trade flows as smoothly, predictably, and freely as possible.
As the most powerful and dominant global power, the United States of America plays a crucial role in the development and implementation of international trade rules and systems. The United States is an original member of the WTO and a steadfast supporter of the rules-based multilateral trading system that it governs. Working through the WTO, the United States is able to protect and advance the economic interests of American businesses and workers while opening foreign markets. These actions protect and create jobs and support economic growth here at home. The United States is also a world leader in securing the reduction of trade barriers to expand global economic opportunity, raise standards of living, and reduce poverty. Moreover, several international powerful nations such as China, Russia, Saudi Arabia, France, and many others also advance and support rules that are in a straight line with their national interests.
Trade is a great enabler and can be the best way to protect power and influence. Since the end of the Cold War, nations across the globe have attached particular importance to the development of trade as an instrument for economic development and global influence projection. Today, the United States imports more from China than from any other country, and China is one of the largest export markets for U.S. goods and services. This trade has helped China project economic power worldwide, including on the African continent.
- Trade and Foreign Policy
Trade is a foreign policy tool for nations in their dealing with other countries in the international system. Trade and foreign policy have been intertwined throughout history, with foreign policy often tailored to promote trade interests. In the 3rd century BC, during the Han Dynasty, China used its military power to maintain the Silk Road for its value for trade. In the year 30 BC, Rome conquered Egypt in large part to have a better supply of grain. In the 18th century, the British East India Company drove British foreign policy toward South Asia based on British trading interests. Free trade is crucial to every country’s economic future. Trade can create jobs, expand opportunities for Ohio businesses, and ensure a level playing field in the global marketplace. But for too long, our workers, small businesses, and manufacturers have paid a steep price for an outdated trade agenda. That’s why I continue to fight against wrong-headed trade policies that ship jobs overseas and shutter manufacturing facilities. (to modify).
- The Future: Interaction of Trade Policy and Foreign Policy
There will always be a straight link between trade, trade policy, and foreign policy as it relates to the establishment and building of strong statecraft. It is a tool for foreign policy influence and projection beyond national borders. In a world in which competition becomes fierce, international companies and industries benefit from the protection of foreign trade policy tools such as norms, rules, and guidelines. The most obvious threat to a nation’s foreign policy is a reduction in its trade volumes with other countries in the global trading system. Without a clear development of a strong foreign policy based on foreign trade development policies, the downfall of that nation will follow.
Trade and Economic Statecraft
Trade was central to the economic reconstruction of Europe under the Marshall Plan and as a bulwark against the spread of communism and Soviet influence. A central purpose of the Plan, as articulated by its administrator, the Economic Co-operation Administration, was to facilitate and stimulate the growth of international trade by appropriate measures including the reduction of barriers that may hamper trade.
One of the greatest assets of great nations is their ability to foster excellent and productive economic relations with other countries around the globe. Almost no experts would dispute that the heart of a successful economy lies in trade power, with a particular focus on regional and global trade. Economic statecraft is the use of economic means to pursue foreign policy goals. Foreign trade regarding the international flow of goods and services can be used as foreign policy tools and is considered the most common and powerful form of economic statecraft.
In principle, a country cannot develop without international trade. Its economy, growth, and development largely depend on trade. In addition, if a country wants to grow as a powerful nation economically in the 21st century, there exists no other way without trade and international trade. If China has become a superpower economically, lifting hundreds of millions of populations from poverty, and positioning itself as the world’s second-largest economy, it is because of one thing: trade and international trade.
Final Thoughts
Global trade and statecraft integration are great features of the modern world. Greater trade flows provide supportive evidence of this cooperation. Trade and international trade will always be at the center of political and economic development interactions for nations and their institutions. One of the challenges the African Free Trade Agreement will face is that it will choose to serve foreign multinational corporations or African countries along with their local companies. Economic development becomes a reality when there is a strong political willpower. Economic development has always been a sub-system of politics and geopolitics. Trade is at the very heart of regional and global statecraft. Trade has made and broken powerful nations. It will continue to do so in the future.
Author The Author
Jean Narcisse Djaha, Ph.D. is the Founding President and Chairman of the African Council on Foreign Relations. He is guided by Romans 8:30” And those he predestined, he also called; those he called, he also justified; those he justified, he also glorified”.
