A deficit of political will: Free Trade orthodoxy is but one of neoliberalism's many economic and political shibboleths. With the political elites of both the centre-left and the centre-right espousing the same dogma, Western electorates are seldom exposed to alternative explanations for, or solutions to, besetting global problems.
FOR ALL THEIR DIFFERENCES, on the subject of so-called "free trade", National and Labour continue to speak the same language. No matter which of them occupies the Treasury benches, Free Trade Agreements (FTAs) will continue to be signed and celebrated. Regardless of whether New Zealand’s trade minister is Tim Groser, or Maryan Street, the gospel according to Doha will continue to be preached. For the centre-right and the centre-left, "free trade" remains the last great bi-partisan cause.
And why not? New Zealand has always been, and remains, a trading nation. Since the late 18th Century, this country’s flora and fauna, minerals and farm-based products have been exchanged for all those elaborately manufactured articles that make for a civilised society.
In the late 19th Century, we perfected the art of placing high-quality foodstuffs on the tables of the world’s wealthiest consumers. It’s what we do best, and we’d like to go on doing it for as long as possible.
Not surprisingly, therefore, a world of tariffs, quotas and other trade barriers is the sort of world our Ministry of Foreign Affairs & Trade (MFAT) will do almost anything to prevent. What it seeks – the Holy Grail of New Zealand diplomacy – is an international marketplace into which New Zealand’s exports can flow without let or hindrance.
A world unequivocally committed to free trade is MFAT’s idea of Heaven. And, like Heaven, everybody want’s to go there, but nobody wants to die.
If New Zealand wishes to send its products to all the nations of the Earth, then it must allow all the nations of the Earth to send their products to us. As Shakespeare would say: "Aye, there’s the rub."
Next time you’re in the supermarket, try finding a can of apricots, peaches or pears sourced from New Zealand growers. Try finding a packet of biscuits made with New Zealand flour in a New Zealand factory. Try finding a light-bulb, or a tube of toothpaste, that hasn’t travelled thousands of kilometres to reach your supermarket’s shelves.
Our apricots, peaches and pears, grown for decades on the sunny river-terraces of Central Otago, were the best in the world. Our biscuit, light-bulb and toothpaste factories employed generations of New Zealand workers – as did the factories that produced our clothing and footwear.
No longer.
Now, the advocates of "free trade" will tell you that this is all for the best: that our local manufacturers were uncompetitive; that we paid "too much" for our T-shirts and toothpaste.
If other nations produce these things more cheaply, say the free-traders, then why not simply import them and lower the cost-of-living for all New Zealanders – especially the poor?
What they usually keep out of the conversation is exactly how other nations can produce T-shirts and toothpaste so cheaply. The answer, of course, is by paying their workers far less than even the most exploited Kiwi worker; by preventing them from organising into trade unions to reclaim some of the value of the products they make; and, by refusing to allow the democratic freedoms that would make such civic action possible.
When trade is "free", it’s all-too-often because no one and nothing else is.
The other subject the free-traders try to avoid is the delicate matter of relative economic strength.
Some nations – some economies – are simply much bigger and stronger than others. So big and so strong, in fact, that they can turn the whole "free trade" exercise on its head.
Ask the Australians who got the better deal in their FTA with the United States. (Here’s a hint: it wasn’t Australia.) Ask our own apple-growers if, in spite of CER, they have open access to the Australian market? (Here’s another hint: they don’t.)
The brutal historical fact of the matter is, that New Zealand has never been wealthier than she was when her trade was anything but free. And that, if we want to be as wealthy again, our best course of action would be to find another great empire to snuggle-up in.
Given the way the world is going, that is likely to be the Sino-Japanese Great East Asia Co-prosperity Sphere. The beginnings of which John Key, Tim Groser and Maryan Street witnessed last week in Thailand.
NZ Incorporated: Suppliers of ice-cream to the new masters of the world.
A trade to make us rich – but not free.
This essay was originally published in The Dominion Post, The Timaru Herald, The Taranaki Daily News, The Otago Daily Times and The Greymouth Evening Star of Friday, 30th October 2009.
FOR ALL THEIR DIFFERENCES, on the subject of so-called "free trade", National and Labour continue to speak the same language. No matter which of them occupies the Treasury benches, Free Trade Agreements (FTAs) will continue to be signed and celebrated. Regardless of whether New Zealand’s trade minister is Tim Groser, or Maryan Street, the gospel according to Doha will continue to be preached. For the centre-right and the centre-left, "free trade" remains the last great bi-partisan cause.
And why not? New Zealand has always been, and remains, a trading nation. Since the late 18th Century, this country’s flora and fauna, minerals and farm-based products have been exchanged for all those elaborately manufactured articles that make for a civilised society.
In the late 19th Century, we perfected the art of placing high-quality foodstuffs on the tables of the world’s wealthiest consumers. It’s what we do best, and we’d like to go on doing it for as long as possible.
Not surprisingly, therefore, a world of tariffs, quotas and other trade barriers is the sort of world our Ministry of Foreign Affairs & Trade (MFAT) will do almost anything to prevent. What it seeks – the Holy Grail of New Zealand diplomacy – is an international marketplace into which New Zealand’s exports can flow without let or hindrance.
A world unequivocally committed to free trade is MFAT’s idea of Heaven. And, like Heaven, everybody want’s to go there, but nobody wants to die.
If New Zealand wishes to send its products to all the nations of the Earth, then it must allow all the nations of the Earth to send their products to us. As Shakespeare would say: "Aye, there’s the rub."
Next time you’re in the supermarket, try finding a can of apricots, peaches or pears sourced from New Zealand growers. Try finding a packet of biscuits made with New Zealand flour in a New Zealand factory. Try finding a light-bulb, or a tube of toothpaste, that hasn’t travelled thousands of kilometres to reach your supermarket’s shelves.
Our apricots, peaches and pears, grown for decades on the sunny river-terraces of Central Otago, were the best in the world. Our biscuit, light-bulb and toothpaste factories employed generations of New Zealand workers – as did the factories that produced our clothing and footwear.
No longer.
Now, the advocates of "free trade" will tell you that this is all for the best: that our local manufacturers were uncompetitive; that we paid "too much" for our T-shirts and toothpaste.
If other nations produce these things more cheaply, say the free-traders, then why not simply import them and lower the cost-of-living for all New Zealanders – especially the poor?
What they usually keep out of the conversation is exactly how other nations can produce T-shirts and toothpaste so cheaply. The answer, of course, is by paying their workers far less than even the most exploited Kiwi worker; by preventing them from organising into trade unions to reclaim some of the value of the products they make; and, by refusing to allow the democratic freedoms that would make such civic action possible.
When trade is "free", it’s all-too-often because no one and nothing else is.
The other subject the free-traders try to avoid is the delicate matter of relative economic strength.
Some nations – some economies – are simply much bigger and stronger than others. So big and so strong, in fact, that they can turn the whole "free trade" exercise on its head.
Ask the Australians who got the better deal in their FTA with the United States. (Here’s a hint: it wasn’t Australia.) Ask our own apple-growers if, in spite of CER, they have open access to the Australian market? (Here’s another hint: they don’t.)
The brutal historical fact of the matter is, that New Zealand has never been wealthier than she was when her trade was anything but free. And that, if we want to be as wealthy again, our best course of action would be to find another great empire to snuggle-up in.
Given the way the world is going, that is likely to be the Sino-Japanese Great East Asia Co-prosperity Sphere. The beginnings of which John Key, Tim Groser and Maryan Street witnessed last week in Thailand.
NZ Incorporated: Suppliers of ice-cream to the new masters of the world.
A trade to make us rich – but not free.
This essay was originally published in The Dominion Post, The Timaru Herald, The Taranaki Daily News, The Otago Daily Times and The Greymouth Evening Star of Friday, 30th October 2009.