International Trade

What people don't know about trade and why they need to know

By Trade Forum editorial team
© International Trade Centre, International Trade Forum - Issue 4/2006

The public may know that international trade affects their daily lives. But people have a sense of unease. They don’t know exactly how global commerce can enrich everyone or what to do when it doesn’t. Only when people understand the power of trade, for themselves and for others, will public support swing towards a pro-trade agenda.

In everyday conversations, people express their worries about unemployment and inequality, about the brain drain and immigration, about civil conflict or environmental damage. What many people don’t know is that international trade can be part of the solution. Trade can create jobs and industries for poor or marginalized communities.

In India, for example, there was a fear that liberalization in telecommunications would bring a reduction in services, particularly in poor rural areas with few big-spending customers (international and long-distance national callers and business clients). To the surprise of many, liberalization actually improved telecoms access in rural areas and lowered rates drastically by introducing competition. The improved services helped with education and community development. Infrastructure development by new companies resulted in new industries for business process outsourcing, creating hundreds of thousands of new jobs.

In recent years, in development circles, international trade has been accepted as a way to reduce poverty. Yet we have not reached a critical mass of well-informed citizens who understand the link. A minority understands the ins and outs of trade policies. Fewer still understand how trade development works within countries, starting with the ability to produce goods and services that will interest consumers around the world.
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