An example worth considering
The process of ratifying the international trade agreement known as TPP11, meant to substantially expand Chile’s economic and diplomatic integration with 11 countries of the Asia Pacific Region, allows us to analyze and acknowledge the all-encompassing importance of international trade.
Foreign trade reduces poverty and increases people’s well-being, while being a mechanism that promotes peace between countries and stability in international relations.
An example of such benefits is a treaty -little known in Chile- denominated the “Abraham Accords” which celebrated its second anniversary last September.
These agreements were executed in in Washington DC, United States, in September 2020 between, on the one hand, the United Arab Emirates and Bahrain and, on the other, Israel, agreeing to the establishment of diplomatic and commercial relations between them, which marked a significant turnaround in the geopolitical situation of these Middle Eastern countries. Subsequently, these agreements were also subscribed by Sudan and Morocco.
Traditionally, Arab countries have regarded Israel as their enemy, with military clashes occasionally erupting between them. For this reason, agreeing to these agreements is indeed a sign of substantial change in the perspective from which these countries now look at each other since then, thereby becoming a great hope for the future well-being of their citizenry.
The name of the treaty alludes to Patriarch Abraham, who is so recognized as such, while bearing a sign of union among the Christian, Jewish and Muslim religions. The signatory countries agreed to open up and start a wide range of collaboration in various areas such as health, education, trade and tourism.
Within a short two-year period, one can already appreciate some of the clear benefits borne by this treaty. Trade has expanded quite significantly; different instruments in the scientific field have been agreed to and signed between the universities of these countries, covering such areas as medicine, artificial intelligence and others; the participation of students, from one country to another, for undergraduate and postgraduate coursework reaches unforeseen numbers; land and air transport has multiplied between the signatory countries; and all this has made possible to glimpse at oil and gas exports from that region of the world to Europe, to help solve the energy crisis triggered by Russia’s military attack on Ukraine; for the first time in history a Synagogue has opened up in an Arab country; Israel is now opening up commercial offices in Dubai, with a view to making future and further inroads in nearby regions.
Returning to the Chilean case, its worldwide trade amounted to US$124 billion in 2015, growing to US$186 billion in 2021.
It is now estimated that, as a result of the TPP11, the country will not only substantially exceed these thresholds, but will also increase its international exchanges in many areas, such as those mentioned above, to the benefit to all citizens, especially the youth.
This Treaty is inscribed in the very essence of Chile’s republican tradition. In the enacting message of our Commercial Code, dated October 1865, reference is made to the Laws of February 1811, which fostered and expanded trade with friendly and neutral nations, while promulgating the so-called Commerce and Navigation Regulations of 1813, thus cementing our international commercial relations on the basis of freedom and mutual reciprocity.
The TPP11 originated in a 2005 joint proposal launched by Chile, Brunei, New Zealand and Singapore. Among other objectives, trade barriers are to be lowered, intellectual property is to be regulated, general environmental and right-to-work standards are to be established, all the while creating a modern and overarching international dispute resolution and arbitration system.
Some sectors, however, under the aegis of a rather ideological strain, have stated their objections to this Treaty, pointing out an alleged “neoliberal” tint to it, which these sectors reject outright, while additionally baulking at its dispute settlement system.
Despite these disparagements, the Treaty was nonetheless approved by the Chilean Senate. Upon its upcoming operational phase it will surely begin to yield its expected benefits.
