April 1, 2008 on the Chico State Campus, Donna Lee gave an hour-long presentation on Globalization and American Trade Policy. Lee is not only a well-known Lecturer but also an Author and Teacher.
Donna Lee’s presentation covered several topics such as Neoliberalism and the logic of competitiveness, reasons high taxes reduce external business from coming in and the diversity of phenomena associated with globalization. She briefly talked of these topics before tying them all in to the main agenda of the evening that Trade is Regional: Not Global. Her primary focus was on the United States Cotton Industry and it’s trade comparison to that of Africa.
Trade is regional: Not Global. Lee presented some interesting numbers that back up her claim. The North American Intraregional trade percentage is 55.8, while Europe stands at 73 percent. Africa however only has only a 9 percent intraregional trade average, while trade with Europe is at 42 percent and 20 for North America. So what should Africa do? It’s believed that in order for Africa to compete in a global free market they must deregulate. But in Lee’s opinion the problem with this solution is that the market is not really free.
Part of the issue lies in the US farm bill. Its original purpose was to assist farmers during the great depression by subsidizing production and insulating it from market forces. Today the Farm Bill pretty much just subsidizes the rich according to Lee. US cotton farmers receive $3.7 billion a year in subsidi es. This assistance is depriving the African Farmer of Vital income. The WTO even ruled that US cotton subsidies are excessive and found that they depressed world prices. So what’s being done to solve this problem? Nothing, and seeing that 46 percent of the Farm Bill goes to constituencies of the 42 members of the house Agricultural committee, nothing will ever happen.
So why should we be concerned? Besides moral reasons, Lee believes that now more than ever “Problems have no passports”. If this is affecting Africa then it’s affecting you and I. Pressure is being put on Africa everyday to create an open economy and build free markets, Lee believes the US interest in this movement is purely selfish and is motivated from our greed and dependence on oil, which could then be imported from Nigeria.
The topic of Globalization and American Trade Policy is very interesting and complex. Donna Lee presents her findings and ideas in a professional manner, which made her presentation interesting and insightful. I highly recommend attending one of her lectures if ever given the chance. If you have continued interest in the topic of Globalization and American Trade Policy check out :
http://www.forbes.com/2007/11/01/cotton-subsidies-wto-cx-1102oxford.html
http://www.oxfam.org/en/files/doc030619_cotton_WTOsympo
2 comments on Trade Is Regional: Not Global
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Excellent report. Excellent talk. Thanks for the detailed, thorough information.
Great report! I have to say that Dr. Lee is right to say that some of our policies here in the states are based on greed and selfishness. The U.S. farm bill should provide long-term solutions and reflect fairness towards struggling people in poor countries.