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tv   Doc Film - A Game of No Rules - The Deceptive Promise of Free Trade  Deutsche Welle  September 28, 2018 5:15pm-6:01pm CEST

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a for us. that's it you're up to date i'll have more at the top of the hour in the meantime of course as always the web site that's t w dot com hundreds of. sure there are people who will go for information they provide the opinions they want to express d.w. on facebook and twitter and up to date and in touch follow us to.
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free trade millions of tons of goods in motion across the planet. it brings prosperity or so we're told protectionism and isolationism or evils from the past or they were until donald trump called for duties on steel imports to the us. europe and china stretton reprisals are we on the brink of a full scale trade war first or signing an executive order to ensure that we really don't like the old duties imposed far to the importers that she did cheers how are we being deceived when it comes to global trade and what role do we ourselves play in that deception. go it should come to us how many contacts back the rest of the world to buy its goods while remaining reluctant to buy goods from . most of muslims want to know. the arguments made for and against free trade are
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full of contradictions germans are proud of the countries rank at the top of the list of exporting nations seemingly unaware that free trade destroys livelihoods at home and abroad. that david doesn't want to have a situation but just that in these cases it's the end that way because the european union even though he had little to no. who are the real winners and is free trade really as free as it sounds. was. coming from. the port of hamburg from here a german products are shipped to countries all over the world. in return around nine million containers arrive here every year most of them from china. the city in
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northern germany is a gateway to europe for goods from asia and when they enter the e.u. many products are subject to import duties. cars from asia and the us are taxed at ten percent clothing to twelve percent smartphones aren't taxed at all. customs duties are complex there are thousands of different types of terrorists in countless variations. agents governance and if a huffman from the ports central customs office chicken pork so every day. and that's my name it's their job to ensure that goods are declared properly there are a vast number of loopholes. to. get out of my it says it's a microfiber coat. so i. for
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a pet. that's right made of knitted polyester as off exactly from the size i'd say it's supposed to be for a dog. made in china but they're different sizes this one is apparently for medium sized dog. do the dog coats have leather parts as well in that case they'd be charged at a lower rate. but that puts and put on hundred percent polyester so at the moment that means a twelve percent import tax and if these were saddles that would only be two point seven percent. they have no idea what's behind that difference it's a decision taken in the e.u. level all they do is check the contents of containers. of the seven i've been working here for a long time and working you feel like germany isn't the world's top exporter but that most of the stuff is coming from china the chinese make pretty much everything . for me. the
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question is do import tariffs bring benefits outside of government coffers. if i guess they protect a country's domestic economy. is that true what role does protecting domestic industries play in an era of global free trade. we've come to the town of huge book housing in the german state of touring and home to vulcan rainer's company merida and century and. the former top cyclocross cyclist was the man who brought mountain biking to germany in a big way. today he's a successful entrepreneur. the company offers a range of models and business is booming. where do the bikes come from.
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this bike it's made in germany no it's not made in germany but it's a german brand yeah it's a german brand so where does the frame come from like so many things the frame comes from china it's painted in assembled in taiwan quality control happens here. both in here completed. a bike designed in germany assembled in taiwan from components manufactured in china. made in this way a bike like this pays a fifteen percent important today when it arrives in the e.u. . but if it was shipped directly to germany from a factory in china the importer would have to pay almost fifty percent in punitive tariffs why because a chinese company can make bikes much more cheaply than a german firm ever could twenty years growth has become the world's largest bicycle but it's actually leading enterprises to group we have the scalpel in this
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promotional video chinese bicycle manufacturer of flu she don't claims it has the largest bike factory in the world an international first class production technology. and more than one hundred robots where the machine companies like these are subsidized by the chinese government but that's just one reason chinese products are so cheap there's also scale are creating it would close one with a production capacity of one hundred million bicycles a year china could quickly swamp the world with its products oh yes markets all of the world. companies like full of gun runners would go under so he sees the import tariffs as protecting europe's bicycle manufacturing industry. for take two nice moves sometimes you have to offer protectionism or this one it's unavoidable as in this the point is that in business eat a fair playing field. you can see it in other areas too. work government subsidies
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keep other manufacturers from competing because the market has distorted. what's up with so it's about jobs in europe sure it's about jobs and fairness. the import duty ensures the chinese bikes are more expensive when purchased in europe. tariffs a form of pure protectionism but there are ways around them for instance having the bike frames that are produced in china finished in taiwan then punitive don't apply the final assembly of bicycles made with chinese frames then takes place in europe . it's an industry that provides one hundred thousand jobs on the continent. when they're just glad that protectionist tariffs keep chinese competitors out of europe's markets. but the international trade in bicycles is a hotly fought segment and the companies trying to grab a slice of the pie will go to great lengths to do so. not long after the e.u.
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implemented punitive tariffs on bikes from china they began to arrive from cambodia malaysia indonesia and other places when it grew clear that the bikes were actually being made by chinese firms punitive tariffs against those countries were put in place. then tunisia began exporting them. and was soon slapped with tariffs. today components for the bikes are still mostly made in china but the frames are finished elsewhere like taiwan which because that's where the rules say value was added the bikes are then no longer subject to punitive terrorists when they're imported into the e.u. . so what happens when the market for bicycles isn't protected by high import duties in the us city of philadelphia bike store owner brian catholic used to sell exclusively american brands that had. and produced domestically.
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but that changed a few years ago there are still american brand names but the bikes all originates in the same place. the. main channel. doesn't matter which the manufacturer is. whether it's track whether it's canada whether it's specialized. all their bikes at some price point or at some level are made. for main china. without protectionist policies like those in europe he says chinese bikes have flooded the market in the u.s. and that has in turn destroyed
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a lot of jobs in the country especially in his home state of pennsylvania where the bike manufacturing industry once flourished. the store owner says it's not a good feeling to promote the sellout of the domestic sector by selling cheap imports but what choice does he. use my family fed. you know i own two different bicycle shops. to be able to offer that offer my consumer. a bike for under four hundred dollars that has gears to be able to offer a bike for under three hundred dollars that's like a single speed ride around the city it's nice to be able to do that. president trump has threatened many sectors with punitive terrorists but not the bike industry in general catholic is critical of protectionist measures but he would have made an exception for bicycles. it depends on what perspective you're looking
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from you know people who've lost their jobs because it's been farmed out to china taiwan. they'll probably have a very different view than somebody who's never been affected by that. but isn't free trade supposed to bring more prosperity for everyone. american woes in many areas of trade can't just be traced back to china but also to germany says professor heritage dieter. he teaches his university students in free to soften that being an export giant also has a dark side to. german products sell well internationally not just because they're high quality but also because wages in the country have only climbed moderately in recent years well the euro has remained relatively weak. trump is angry about the trade imbalance and dieter says he has a point. to some places in germany mean deficits in other countries germany expects the rest of the world to go into debt with germany but
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also likes to criticize the rest of the world for being too deeply in debt it wants to have its cake and eat it that's passed as the info in the. germany really does profit immensely from global trade. in two thousand and seventeen it exported goods worth over one point two trillion euros like china that makes the e.u. a big net exporter germany has a whopping two hundred fifty billion euros trade surplus. the us has a deficit of around five hundred billion with many more goods and services flowing in that flowing out and going debt has long term consequences for america. one country is loss is another's gain. we had next for bavaria. rivers here one french meatworks for. a company making products
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they're often exported to the us. here is a good salary and can afford to buy the things he wants. that includes many products made available by free global trade. just like most households all over the world the schmitz home is full of things made in other countries. is anything here in their living room actually made in germany. maybe very little if we got rid of everything that was made in germany there'd be nothing left around strong summer live. with one exception the antique sewing machine proudly on display. i don't know what about clothing we take a look in the family closet. made in turkey made in
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bangladesh do so designed in germany made in china. even their pantry is full of food from all over the world. it seems. this rich have had personal experience with how quickly you can lose in the free trade game. one french myth nearly lost his job when schaeffer wanted to move his plant to a cheaper location abroad. the employees fight to keep the plant drew national attention schmidt and his colleagues came to an agreement with the company it worked for a while. in the office for ten years we put in five unpaid hours a week and then they came over night and said we're closing the plaquemines that
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was a shock for all of us who work there because we're all thinking. we do five hours a week for free so that's a pretty some the company is getting for nothing. the shadow side of globalization . was lucky he was able to stay with the company but he had to move to another plant it's when on this beautiful everything's all sweetness and light now and they act like we're the winners because we make good money in the industry. but that's down to relocations and plant closures we were lucky to get positions in trying for it but in another company they might just let everyone go and those people will be the losers. manufacturer is usually go where it's cheap it's we take a look at the smith family bicycles the brands are all german. but we know where they were all made at least the frames.
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cheap production in china that cost hundreds of thousands of jobs especially in the u.s. . back to philadelphia the city is a dynamic growing urban center. but in the surrounding region the factories and jobs have disappeared. like in many parts of the u.s. . sarah parker and her neighbors susan schweikert don't count themselves as losers in the globalization era and they don't like donald trump but they're on a mission by america i know. sarah has a popular website and buy american is it's clarion call. something like born again i think every. in her usa love list she gives thousands of fans advice on how to replace products made in other parts of the world she says
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it's about their jobs. check it out american flags. you wouldn't believe how often american flags are not even made united states this is maybe united says is it oh yeah ok i like it when they when they put the label really in the states on the front because people really do care about that and this is me in a small town somewhere i'm sure i don't know where but by looking for the mean you're saying label i'm supporting that small town and the people who made it. parker says she herself experienced how jobs moved south of the border to mexico and depopulated whole areas says the factories died china china she decided to do something about it my first job after college was selling chevrolet i went back a few years ago and that dealership was closed weeds growing completely abandoned it sad to see it. and the pride that people have when they build something and able
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to purchase that i think that we've lost that. it's often hard to determine the origin of global products that's the new norm. the two americans say that should bother us more. you know they don't have to tell you where things are made i think it's only food things and cars so we're actually lucky they give us as much information as they do you know. parker admits that she made an exception when she bought a volvo the swedish car maker now belongs to a chinese multinational. in her household she says she's trying to buy only american made products with at times limited success. so there are some things that i'm not sure but i know the kitchen aid is. assembled in ohio i think i read that the bowl is made in korea i know that a home out there made is not you cannot buy an american made tester's i thought
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this was american really because it's a general initiative sounds like it has a nationalist agenda parker says it all boils down to a matter of choice i think it's only a nationalistic view are saying we're only going to buy american made products we make a lot of choices us consumers we choose things because they have recycled content and or we choose things because they reflect a particular lifestyle that we want choosing something that's made either in your own community or your own country is just another consumer choice i'm glad that we have those choices which is why for me at least it's not nationalistic or. so what would happen if we all followed her advice and tried to buy only products made domestically if borders closed and protectionism green and. it's happened before at the beginning of the twentieth century world trade and globalization really took off but it soon hit major speed bumps. the u.s.
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slid into the great depression germany faced a huge economic crisis of its own. and protectionism suddenly reared its head voices calling for isolationist policies grew louder. during the one nine hundred thirty s. the u.s. began to adopt an increasingly aggressive protectionist stance raising tariffs drastically to protect american industries and jobs. germany also put up barriers to international trade the mixture of protectionism and nationalism ended in the horrors of the second world war. i know there were disastrous developments and well trained in terms of volume it fell by two thirds within four years from few ya. today's standards that it's unimaginable. if we saw a five percent fall in trade people would call it a major crisis visa and visa to back then it fell drastically and dramatically used
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to work or not and that development can be traced back to protectionist policies put in place by the united states of america the farm we construct for the bureaucrats will crims. to prevent other major conflicts the body that would eventually become the world trade organization was set up headquartered in geneva. its fundamental principle that free trade brings prosperity for all has never really been accepted on the contrary the w t o has come under heavy fire in recent years. and the us led by donald trump largely ignores it. is protectionism said to send the world into a new economic and political tailspin or are dire predictions just half the story. in the town of new locker in the german state of bunder timberg the story
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a group makes tiles business is brisk the construction industry is healthy. but the business is facing stiff competition from china titles from their unbeatable so the e.u. has put punitive tariffs in place. tiles imported from china now have an import duty of twenty six point three percent protecting jobs here from asian competitors. if they didn't exist says wilson baz and kitchens in germany would soon all be tiled with chinese products. how did this in that moment i think it's justified in the current climate because the competitive situation is unbalanced we know the chinese manufacturers are selling that overcapacity. internationally very very low prices and that puts us in a situation where we can no longer be competitive so we can keep our people we have
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to play by those rules i mean if only because. if punitive tariffs on tiles is also a protectionist measure but it keeps people in jobs in germany and helps push for better production and environmental standards. your bird seed you know if we produce here in germany we're expected to comply with laws that are relevant in germany and we did so we exercise control over things like environmental aspects of course we don't have that for products coming from abroad to home and then there's the issue of white versus value he says because it really makes sense to transport these products of assumption long distances. without punitive tariffs european tile makers wouldn't hold out long under the pressure exerted by their chinese counterparts. if the e.u.
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hadn't instituted protectionist measures the industry would soon disappear and not just the tile industry. in all the block has put punitive tariffs in place for fifty three types of imports from china among them steel porcelain and even ironing boards. the n.t. dumping measures have been accepted by the w t o. protectionism is alive and well and apparently protecting jobs. but although the e.u. has taken measures to protect its businesses it frowns on other countries trying to do the same. cameroon. some mbali is on her way to her plantation. the path takes her through the jungle. she's the head of a village co-operative located in the rain forest north of your own day. the walk takes about an hour in each direction. and there's no street.
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the cooperative members harvested over two tonnes of onions here last year and sold the crop at a market in the distant capital the proceeds fed the entire village. to them in. onions as a remedy thank you on the for example when you have to test of comes like this amount the septic and we use that as an antiseptic and we make our sources when the new. source cameroonians wouldn't know what to do without onions. so it's almost moving. now the women from the village are planting kosov instead not because they want to but because it no longer makes sense to plant on younes. onions imported from europe have to strain the market.
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to protect farmers like these cameroon would have to raise import duties even more but it can't because new free trade agreement with the e.u. called e.p.a. prohibits that. go along the poet onion field stretched from here down to the river and over that. but then we stopped being able to sell all of them because of the huge number of importance on the move on that's why we had to stop growing them. so perhaps the local not eat there. onions are a staple here the african country consumes hundreds of thousands of tons a year until now they were all grown domestically. just as they do every day the women in the co-operative prepare dinner. i think for
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now they still have their own onions. produce that not only feeds them in their families but also helps them survive. but that the good i'm happy to have. fifty kilometers south of the markets in your own day is growing harder and harder to find onions grown domestically every morning trucks arrive here filled with onions most of them have been imported from holland they're the ones packaged in red nets. mum and ali has dressed up for the trip to yone day to talk about the onion issue. she's meeting up with even to con who heads up an office that examines the effect free trade is having on every day consumers here. the to discover that dutch onions cost around a third less than homegrown varieties. but how can that be when there's already a thirty percent punitive import tariff on the vegetable. oh so you know what i'll
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do. i don't use it you see. and as though the cheap onions weren't bad enough for the farmers other agricultural products like garlic from china are also flooding markets in the fruitful country. oh. we have no chance as you can see all of you because i want to protect our domestic markets faster than you would i mean you coffee thing off opening up markets to the well i'm going to talk about. european overproduction is undercutting africa's agriculture sector. who doesn't know what to do next what happened with onions could happen just as easily with other farm products. and the new free trade agreements with the e.u. don't allow cameron to raise punitive tariffs any further to protect the industry.
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oh i don't know i think it's high time they on the side that they should leave african countries to build our own markets just as the e.u. to. time to build its own markets it's time to let us build our markets and everything partnership agreements with the e.u. . in other words europeans are denying africans what they need most their right to institute measures to protect their still vulnerable agriculture sector. all industrialized countries including germany were only able to grow into economic heavyweights because they initially threw up big barriers to foreign competition. but that fact is conveniently forgotten nowadays without protectionism in other words germany never would have turned into the industrial powerhouse it later became. back in the one nine hundred century the irish chancellor auto from bismarck closed borders to keep out imports of wood and grain from russia. and britain also protected itself
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by coming up with the made in germany label at the time it was meant to identify cheap mass produced knives. only later did the description grow to have positive connotations. you can preach free trade principles when they themselves are especially competitive and they preach it for the sectors where very specially competitive study an area where they're less competitive they allow protectionism i cannot recall sure in europe. for example in switzerland. we've come to the kind of science gallop. not long ago this was decided in a referendum to support more food security and quality in their country. and this is one of the people behind the movement the president of the swiss farmers union marcus ritter he owns a typical family farm in the area and he firmly believes that unlimited free trade
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can be a dangerous thing. ah how long. if i trade were afraid if every border was open then for economic reasons food production here in switzerland would make no sense at all it would have to be relocated to places where production is cheapest so my labor costs next to nothing but then he wouldn't be here in switzerland the. swiss pay rates are on average fifty percent higher than even in wealthy neighbor germany richard could never produce food here in switzerland as cheaply as he could anywhere else in europe. yet it's about more than price it's also about having a domestic industry and saving jobs that's why the country has imposed import duties on a range of products. the sheet but the amount of those duties makes
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a big difference here in whether a business can today be run profitably whether duty is a very low as is the case with milk for example it makes things very tough with a high as they are with things like fruit and vege in those markets they work very well in america. here's how the swiss do it strawberries are a good example most of the year they're charged three swiss francs of import duty per one hundred kilograms. but during the harvest season in switzerland that climbs to five hundred ten francs which basically amounts to a ban on strawberry imports with onions imported is usually paid just under three francs for hundred kilos but wells was sonia's are being harvested it's one hundred twenty six francs. with meal importers pay one hundred nine francs in duties within a fixed limit if you want to import more though you'll have to dig deep two thousand nine hundred francs and duties for just one hundred kilograms of meat.
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so what about bicycles no matter where they're from they cost just twelve francs a. piece in tariffs. the farmers union president likes the flexible import duty system it keeps cheap competitors out of the market when it counts most. this was farmers say it's not just about protecting their livelihoods they insist it's also about conservation and animal welfare only with protectionism they say can those and other values be enforced. cattle breeder marcus ritter doesn't believe free trade principles are compatible with production standards the swiss would accept. but very important is that here at switzerland we also believe we have an ethical responsibility to produce the food is that we can not just seek to use our purchasing power to get things on the well market as cheaply as possible so price
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plays a role but asacol responsibility also plays an important one so. of course the swiss pay a high price for supporting domestic production of food but it's the only way to make farmers in the country competitive in a cheaper world that's protectionism. and germans do it to. germany subsidizes everything tara farmland in the country to the tune of two hundred eighty euros annually in all countries in europe investors around sixty billion euros every year in agriculture. but that encourages the overproduction of milk and pork which are dumb to cheap on the chinese market that's the other hidden side of european protectionism. and the americans do it as well farmers there also receive huge subsidies while giant agribusiness multinationals exports produce all over the world the biggest losers in that equation are small farmers in poor countries which brings us back to cameroon. for years european
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firms exported poultry parts here that no one in your. appointed that destroyed agnes coas breeding business no one bought her cameroonian chickens anymore at least until the country decided to be more protectionist and barred imports of chicken parts. and up since then business has slowly picked up people in her village are slowly beginning to raise birds for sale again. ready i'm going to be able. to i'm kind of earth and . co is a well known figure in the area she's happy to show us her small farm. she hopes that things now will get a little better. these coops remained empty for years because european chicken especially parts from
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germany simply made it too cheap for her to compete. but now the ban on imports has given her a fresh start. to sound back it's going well again. i love my business i'm so happy that you can earn money again with chicken farming he says a nazi get on that. badly. hurt a chicken markets in your own day. the birds on offer here are domestic varieties they had grown scarce while cheap european imports dominated sales. francisco mari from the n.g.o.s bread for the world has come on an inspection tour . fifteen years ago he was one of the first to raise a public outcry about how europe's poultry waste was destroying livelihoods in africa. he's glad to see the cameroons ban on the import of frozen poultry parts
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has restarted domestic production closing the border helped in this case the cameroon has to lift the. then because according to an agreement signed with the e.u. tariff and non-tariff barriers have to go. but murray believes that at this critical juncture in its development cameroon more than ever needs to protect its industries . actually i thought of course markets should be protected as long as their products can't compete with ours just justified. and many countries have only now begun to ramp up their own production with these kinds of systems. why shouldn't africa be allowed to do that because it opened a little. book larry knows all about the price of chicken and he's also acquainted with the desperate situation people face here and in other african countries. the free trade agreements that the e.u. is forcing on them he says are one sided and outdated. i
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thought that was. they give these countries no advantages that they didn't already have namely market access. and they had to open up their own markets step by step to get it cameron has little chance to protect itself. other industries and trades also need protecting says mari because they're still in a critical phase. i companies in cameroon for instance could begin building powerful motorcycles today they all come from china. free trade does bring prosperity to some people but it also widens the gap between rich and poor. the richest ten percent of humanity now owns ninety percent of the welfare on the planet. the poorest fifty percent of the world's population has to make do with
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almost nothing just zero point two percent of the wealth. the winners are those who can afford to invest in global concern. google parent company alphabet has quintupled in value in the last few years apple's value has risen by a factor of ten. during the same period the world economy has only grown by about a third but capital flows across borders wherever money can be made so the finance sector also profits at a vast scale from free trade with. the problem is there are no global rules for taxation that allows big companies to park billions in offshore tax havens like the cayman islands or panama. there are no global controls in the areas where they have the potential to make a difference to the world's poorest. that's why protests are growing
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louder like this one at a w t o meeting in buenos aires. critics say the organization is little more than a cartel there to protect the interests of the powerful industrialized nations and global concerns. people like mom and ballet have few chances in a world like that because without protectionism trade can never be fair. food production in particular has to be shielded from cheap competition whether in developing countries or industrialized ones. also if we want to continue producing food products in the region rather than in the cheapest place in the won't and if the products only follow the highest purchasing power then the only way to sustain that is with protectionism bought up positive protectionism based on sustainability because. africa doesn't need fetters it needs protection while its
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industries grow. and only when that happens will the flood of migrants to europe searching for a better life finally east. oh francisco mari says the current model is fundamentally flawed. hundreds the rules of world trade are actually made to allow big countries to invest in smaller towns and gain access to their resources. and there's a lot of hypocrisy there especially in agriculture well everyone bangs on about how we need free trade but is busy protecting themselves in a huge way with subsidies for their own farmers. so it's a two faced a suction crying out for free trade internationally and practicing protectionism at home i won't work it's unfair and i believe there's no future in it for. the global exchange of goods is always a fight for prosperity and in the end there are winners and losers trade that is truly free is a mission and will always remain one. becomes
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. a busy week for the bundesliga squads in canada and then six cisco drama on hakuin certainly looks that might have to be challenged by a gray man. on whom shall give a get back in the game to come to losing to prime time to still function of the
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table with zero. kickoff thirty minutes total. of turkish president paradorn is in berlin for a controversial state visit. the relations between the two countries have been strained for the past two years now chancellor merkel and president carter want to see the meetings as an opportunity to normalize their will nations. we will be following the state this is closely today. and so was the language of and. speaking the truth global news that matters g.w. made for mines.
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this is the dubliners life from god led to his president to our mates with germany's chancellor merkel in berlin of its own leaders. deeply divided over his human rights record. to bridge the gap. also on the program america's judicial committee prepares to vote. on a supreme court nomination before the full service after hearing dramatic testimony accusing him of attempted rape. on the indonesian island of so the ways in escape.


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