The G20 summit was
held from Sep 5, 2013 to Sep 6, 2013. The leaders who took part in this summit
discussed the world economy, the system of international finance, employment,
trade and other issues. Xi Jinping, the president in China, said that it was
very important to reject trade protectionism together so that the G20 members
could promote free trade and improve the growth of the world economy. And he came
up with three ideas to achieve these goals. First of all, the G20 members
should oppose trade protectionism, and develop the openness of the world
economy. They need to create a free and open global trading environment to
boost facilitation and liberalization of international trade. Second, they “should
strengthen the global multilateral trade system”, whose core is inclusive and
non-discriminatory. Last but not least, they should promote the global value chain
and set up an integrated world market. During this process, they ought to know
the division of each country and help developing countries strengthen trade
capacity. Xi thinks that the development of the economy depends on the mutual
cooperation of each country. Additionally,
Xi also talked with other counties’ presidents to build up good relationships
with them.
In my opinion, I
agree with Xi’s view. Nowadays, every country cannot be content with their own
resources, technology, capital and so on. So if they can trade freely, it will
help them promote a lot. Furthermore, we learned that free trade was beneficial
to “Pareto Improving” at the country level, which means that we can make more
people better off without making others worse off. Additionally, international
trade has an effect on the terms of trade. If a country can increase the TOT, it
will make the country better off, because the country can earn more money from exporting
and save more money from importing. Also, consumers and producers can attain
the gains from trade. For example, consumers can import more goods that are
scarce in their countries and producers can obtain cheaper material to lower
costs. There are a lot of benefits for trading, so it is important for
countries to boost trade without making many restraints, such as tariffs, trade
barrier, etc.
Sources Researched:
Especially, many developing countries should build a strong relationship to maintain and promote the openness of the trade market.Such as BRICS countries, I think their priority is to oppose trade protectionism and protects multilateral trade. I also believe these five countries should work together and fight against the unfair treatments in financial trade. only in this way they can obtain a bigger say for developing countries in global economic governance, including the World Bank and the International Monetary Fund.
ReplyDeleteEarlier in these days,I heard of a news that China is speeding up many efforts to set up a BRICS development bank. For example, several countries have agreed on a joint foreign currency reserve pool of 100 billion US dollars, I consider this kind of measures will absolutely accelerate to establish a safer and fairer trade net.