WION Global Summit 2022: Experts emphasise on need for globalisation and an end to trade wars

The third session during WION’s 'Global Summit: Mission Peace' dealt mainly with the need for globalisation in a world plagued by trade wars. The speakers spoke about the adverse effects of a trade war and pointed out that globalisation can be the key to the growth of various nations.

The session was titled ‘Trade Wars: No Long-Term Winners’ and the speakers were -

Pat Breen, Former Minister for Trade and Business Ireland

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Simon Lacey, Senior Lecturer, School of Economics and Public Policy, The University of Adelaide & Former Vice President, Huawei Technologies

Waseqa Ayesha Khan, Chairman, Parliamentary Standing Committee on the Ministry of Power, Energy and Mineral Resources, Bangladesh

Richie Santosdiaz, Senior strategic advisor for Emirati-owned The Corporate

The session was moderated by Palki Sharma Upadhyay, Managing Editor, WION.

Breen was quick to point out that there are only short-term winners when it comes to trade wars and urged the world to learn from past mistakes when inflation and scarcity ultimately led to war.

“Trade wars may have short term winners but, in the end, it is the people that you are trying to protect who will lose the most. It is not the end of globalisation. There are going to be blips all the way through as we have seen in relation to trade wars and in 1930s during the great depression, people were afraid that they were going to lose their jobs and so they put tariffs in place.”

WATCH |Are trade wars spelling the end of globalisation?

“Those tariffs led to inflation and down the road, we had the World War II. So, we have to learn from the lessons of the past and I think diplomatic and economic relationships are important to end trade wars,” Breen explained while speaking about the deep impact of the ongoing trade wars.

Khan, who joined the discussion virtually, supported Breen and said that trade wars are not sustainable and said that trade war between the US and China will not impact Bangladesh.

“Trade wars are not sustainable. If you're taking about beneficiaries of trade war, the supply and demand will actually decide which country is the best producer of a certain commodity.”

“Bangladesh has always been competitive in the ready-made garment sector. The trade war between US and China may benefit somewhat but will not make a sea change in Bangladesh.”

When it came to globalisation, Lacey said that there is a realignment going on globally. He also explained that although most countries want to be self-sufficient, it is not easily achievable for most.

"There is just too much money to be made by intergrating markets," he opined.

Richie Santosdiaz provided an insight into the subject from a consumer point of view and stressed on the diversification of supply chains. He explained that the pandemic and the Suez Canal incident has taught the world a lot and it has also resulted in accelerated digital transformation of businesses.

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