Could reshoring hurt global trade?
Marketplace All-in-One
Marketplace
4.5 • 1.4K Ratings
🗓️ 25 March 2024
⏱️ 7 minutes
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Summary
From the BBC World Service: In an exclusive interview with the BBC, the World Trade Organization’s director-general Ngozi Okonjo-Iweala says that when countries bring production back home — known as “reshoring” — it does not necessarily make supply chains more resilient. She thinks it contributes to a fragmentation of global trading relationships. Plus, how the popularity of the Mediterranean island Ibiza has driven up rents, making life hard for workers and the tourist businesses that employ them. And the streets of Paris see the return of a historic race of cafe servers.
Transcript
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| 0:00.0 | Here's this trend called reshoring and could it threaten global trade. |
| 0:06.1 | Hello and this is your Monday morning marketplace morning report from the BBC World Service. |
| 0:11.2 | I'm Leanna Byrne. So here's a warning. The head of the |
| 0:13.9 | World Trade Organization says that trading relationships between countries are |
| 0:18.2 | in danger of falling apart. In an exclusive interview, the BBC, in Goza Oconjo Eweila, says that when countries bring production |
| 0:26.0 | back home, which is something called reshoring, it's not necessarily a sign of resilience. |
| 0:31.7 | This trend has been on the rise since the COVID pandemic hit. |
| 0:34.6 | Here she is speaking to the BBC's Wilbane. |
| 0:37.2 | We do see protectionism coming in, creeping protectionism and yes we are worried and concerned about that and we think that the |
| 0:47.1 | open free and fair trading system that was created 75 years ago has really delivered. It's lifted more than a billion people out of poverty. |
| 0:57.0 | Why do you think people don't seem to feel that though? Because it is often the backlash we hear, isn't it? |
| 1:01.0 | Think of anything from the Brexit referendum to |
| 1:03.7 | to Trump's first election. It was the voice that we heard on the World Service all |
| 1:07.2 | the time. People forget. We are where we are today. You know, poverty from the 1980s when we had the percentage of people living under absolute poverty at about 55. |
| 1:19.0 | We are down to 10% today and that is living below $2.15 a day using World Bank figures and a lot of that |
| 1:28.0 | progress has been due to trade and the free fare and open trading system that was created, even world peace. |
| 1:35.8 | So we mustn't forget when there are these troubles that are emerging to try and start |
| 1:41.2 | throwing the baby out with the bathwater. |
| 1:43.2 | That's what we are. |
| 1:44.2 | Caughtioning, |
| 1:45.2 | Creeping protectionism, large subsidies, |
| 1:48.7 | all these measures that may not support competition |
... |
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