What global trade deals are really about (hint: it's not trade) | Haley Edwards | TEDxMidAtlantic

Haley Edwards introduces the idea that trade deals are counterintuitively not about conventional trade aspects like tariffs, quotas, GDP, or jobs. She explains that the popular discourse surrounding trade often misrepresents its true nature and purpose, emphasizing that there's a deeper underlying agenda.

The modern era of free trade began in 1944 at Bretton Woods, where leaders aimed to create an economy that would promote world peace. The underlying philosophy was economic interdependence, where nations reliant on each other for essential supplies would be deterred from conflict. This led to the General Agreement on Tariffs and Trade (GATT) in 1948, which fostered globalization and explosive economic growth.

By the late 1970s and early 1980s, the focus of trade discussions shifted from peace to global efficiency. With traditional tariffs and quotas already low, the new emphasis was on non-tariff barriers. This meant addressing domestic policies and regulations that could impede the free flow of goods, even in the absence of direct tariffs, aiming to make the world's economy as efficient as possible.

In 1995, GATT was replaced by the World Trade Organization (WTO), accompanied by powerful agreements like NAFTA and CAFTA. These agreements were governed by the philosophy of non-tariff barriers, expanding the scope of 'trade' to include domestic industrial policies, laws, and regulations. This marked a significant departure from earlier trade concepts, now encompassing issues like environmental laws and pharmaceutical data exclusivity.

Edwards provides examples of how trade discussions now involve profound questions of national sovereignty. She cites the conflict between the US, which wants to export genetically modified beef, and Europe, which rejects it based on cultural and social norms. Another example is the 'dolphin-free tuna' dispute, where US labeling laws were deemed discriminatory against Mexican fishermen by the WTO. These cases highlight the tension between a nation's right to set its own standards and the drive for global efficiency.

The current conversation around trade, as seen in political discourse and reactions to agreements like the Trans-Pacific Partnership, is often confused because people are not realizing that trade discussions are fundamentally about establishing global rules and standards. Edwards argues that rather than asking if trade is good or bad, the real question is what kind of world we want to create through these rules. She encourages people to think about whether the goal should solely be global efficiency or something broader, like global prosperity for all.