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Have you ever done a trade at lunchtime? Maybe you swapped
an apple for an orange, or chips for pretzels. By trading,
both parties wind up with something they like better than
what they had originally.
Global trade, of course, is a lot more complicated. For
starters, people usually sell goods or services for money
rather than swapping them for other goods and services.
Then there are the countless laws and treaties, with such names as
NAFTA and
GATT, governing
international transactions.
On top of that, nations often charge tariffs,
or taxes, on items coming into the country.
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In the 1950s, containers began to revolutionize cargo shipping.
Today, more than 18 million containers like this make more than 200 million trips worldwide
per year. About 25% originate in China.
Source:
Comstock |
Still, the goal of global trade is the same as your
lunchtime swap: to make everyone better off. Does that
actually happen? Yes and no. The big plus is that people can
get an incredible array of affordable goods from around the
world. The downside is that global trade can strain the
environment and even pose risks to our health.
The following four examples demonstrate the complexities of
global trade.
UNEXPECTED IMPORT
In 1999, scientists discovered a strange new fungus on
Vancouver Island off the western coast of Canada. The fungal
species was not a welcome addition to the neighborhood. By
2007, it had made nearly 200 people sick. Eight of them had
died. The fungus also infected domestic and wild animals.
Where did this ecological intruder come from? Well, it
exists in Australia, so some experts believe it came from
there. It may have crossed the Pacific aboard eucalyptus
trees shipped from Australia to Canada. It may also have
stowed away on shipping crates.
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This shows the type of information that public health officials
gather in order to combat new health problems.
Source:
Sunny Mak, British Columbia Centers for Disease Control |
Buying goods from abroad can
give you more than you bargained for!
Finding the source of an emerging infectious disease is not
easy. Global warming, for example, brings new “ecological
niches.” It’s possible that the fungus had always lived
quietly on Vancouver until the warmer summers created the
right conditions for it to emerge at a new level. Without
prior exposure to the new form, humans and animals living on
the Island had not developed an immunity to the fungus.
FOREST FOLLY
China has become one of the world’s biggest sources of wood
and wood products, especially furniture and floorboards.
That means jobs and money for the Chinese. There’s just one
problem: China doesn’t want to cut down its own trees.
That’s because China knows firsthand about the problem of
deforestation.
Back in 1998, floods washed over treeless
landscapes, and killed 3,600 people. Chinese logging bans
and replanting efforts are the prime reason that Asia’s
forest cover has actually grown in recent years while
deforestation continues elsewhere.
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| Of course, new forests and old ones do
not share the same biodiversity and other characteristics. Source:
Forest and Agriculture Organization of the United Nations |
So how do you make wood products without felling trees? In
the global economy, the answer is easy: Buy the wood from
someplace else. China imports timber from Africa as well as
Burma, Indonesia, and other countries in Asia. Eager for
money, these countries are destroying their irreplaceable
forests at a rapid pace.
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| Source: Forest Stewardship Council |
There have even been reports that
Chinese companies have bribed officials in other countries
to allow illegal logging.
Without labels telling us where the materials used to make
products come from, how can we make wise choices?
Fortunately, there’s something consumers can do about this.
That is to look for products with the
Forest Stewardship
Council logo. It certifies that the lumber or wood
product was produced in an environmentally sound way.
GOLDEN STATE GAS
If California were a country, its economy would be the tenth
largest in the world. As a result, many companies set their
sights on selling products to Californians. That gives the
Golden State a fair amount of economic power and shows how
in a time of globalization, one state or country setting
pro-environmental standards can have a big influence
elsewhere.
California is the only state allowed to set air pollution standards higher than those imposed by the U.S. government.
Residents want to prove that it is possible to have a strong
economy while also acting environmentally wise. California
state law requires a 25-34% cut in greenhouse gas emissions
by 2020. To meet these standards, refineries that want to
sell their products in California must produce new blends
of gasoline with higher percentages of bio-ethanol (a
renewable fuel made from crops such as corn or switchgrass).
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| To see how California compares
to the rest of the U.S. and to learn more,
click here.
Source:
Energy Information Administration |
Although most ethanol produced in the U.S. is made from
corn, switchgrass is preferable and far more efficient. Only
a very small amount of fossil material
is needed to make a gallon of switchgrass ethanol. On the other hand, every gallon of
corn-based ethanol fuel requires about .7 gallons of fossil
energy. Switchgrass is fast growing and grows well on land
that can’t be used for other crops. According to scientists,
corn-based ethanol can reduce global warming pollution from
10-30%, and switchgrass ethanol, by as much as 90%.
Some refineries have started making their gas as green as
possible because they want to sell gas in California. This
is good news for the farmers, the environment, and U.S.
energy independence. But, it’s taking a toll on drivers’
pocketbooks. In part because of California’s standards, gas
prices there are usually higher than in other states. (Other
states are following California’s lead for high standards.)
FOOD FEARS
Bananas from Costa Rica, olive oil from Italy, chocolate
from Switzerland, coffee from Kenya—global trade can serve
up an international feast. Problem is, there may be
ingredients that weren’t on the menu.
In 1997, for example, nearly 800 Americans and Canadians
contracted cyclosporiasis, an intestinal infection. They got
it by eating raspberries from Central America. Water used to
irrigate the berries, it turned out, had contained a
parasite.
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| Laboratory workers take safety
precautions when testing imported wheat gluten.
Source:
U.S. Food and Drug Administration |
In 2007, China banned two brands of American peanut butter
after the World Health Organization announced that they
might contain salmonella, bacteria that can cause abdominal
pain, nausea, diarrhea, and serious infections.
That same year, U.S. firms recalled a hundred brands of pet
food with ingredients from China. The food was causing
kidney problems in cats and dogs. Nearly 500 pets were
affected, and 100 of them died. The problem turned out to be
wheat gluten contaminated with melamine, a chemical used to
make plastic that also makes the pet food appear to have
high protein content. News coverage of this issue revealed
that a very small percentage of the food imported from China
undergoes safety inspection, even when it’s intended for
human consumption.
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