#tradefacts
10 messages on international trade

Societies win when countries trade. Nonetheless, protectionist ideas are gaining support from government and industry around the world. This serves to enrich a few and damages the interests of many. We believe protectionists are getting it wrong and would like to make our case in ten factbased messages on international trade - one each week and collected below.

all #tradefacts

#10 - Workers threatened by globalisation need support, not protectionism

| recourse to protectionism “to bring back jobs” is not a solution as the number of jobs put at risk will outnumber those directly protected and cause economic damage.

#9 - Trade makes shopping cheaper

| International trade makes both sides of the trade better off: It facilitates economic growth in exporting countries and increases purchasing power on the import side because consumer prices fall.

#8 - Engagement helps making trade more sustainable, not sanctions

| Modern trade agreements increasingly include provisions pertaining to sustainable development, which gives rise to questions about their effective implementation and enforcement.

#7 - TRADE DEFENCE INSTRUMENTS ARE MEANT TO PROTECT THE EU ECONOMY. OFTEN, THEY ACHIEVE THE OPPOSITE.

| Trade defence measures such as antidumping are not well suited to modern international production chains, easily harm the EU economy and consumers.

#6 - Trade makes poor countries richer

| From 1996 and 2016, gross domestic product (GDP) per capita tripled in Least-Developed Countries. Much of this can be attributed to an increase in trade and foreign investment.

#5 - Trade helps to avoid conflict

| When countries trade with each other, they are less likely to engage in conflict. Some argue this contributes to international peace. This claim shouldn't be exaggerated but there is some truth to it.

#4 - Tariffs are like a tax which hit poor people hardest

| Tariffs are like a tax hitting low income households hardest: the poorest lose 1.6% of income after tax.

#3 - Trade stabilises the economy of developing nations

| Export diversification stabilises currency earnings and enhances economic growth, especially for countries at the lower end of the value chain.

#2 - 31 Million EU jobs are supported by exports. And these pay nicely.

| 31 Million jobs in the EU are supported by exports and trade with the world, highly skilled and well paid they help modernising the economy.

#1 - Trade makes the world better off. It should be more popular.

| When a firm or an individual buys a good or a service produced abroad at lower cost, living standards in both countries increase. Societies gain when countries trade.

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