Trade War and Their Effect
A.What are the current problems related to this question?
First of all, we need to understand what does Trade War means, it means when one country attempts to harm another’s importation or exportation of goods, usually through the implementation of tariffs. In nowadays, trades between countries, for developing countries, help countries to develop at a rapid rate. For example, America has the best and the most advanced chip in the world, then other countries may try to trade with America for the best chip product on this planet, and there is always a fee named tariffs taken away by the country bringing in American’s chip. Usually, they try to lower the tariffs to increase the amount they deal with every time. America wants to sell those chips to other countries to get money, cause the demand is always lower than the stored. So it is a double-win. But Trade War always goes the opposite, when two countries have a Trade War, the demanding country increases the tariffs, that is where trade war erupts, stymying the global trade. Smoot-Hawley tariffs was a famous tariff increasing example that happened back in the 1970s in America due to the Great Depression. Other countries increased their tariffs to reduce their loss of revenue. It inflicted heavily on the loss of global trade.
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One big problem related to the trade war could be the one between China and America that first started in 2018. Both countries may have “benefited ” somehow from a certain level. But on a long time observation, it can only be a lose-lose at the very end, it has caused on a scale of billions of dollars. And it is never a harmful event between the main contemptor, the global economy has paid a big price for all these.
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Another trade war called The Milk War, trade war between Belarus and Russia took place in 2009, first caused by Belarus refused to claim the independence of Abkhazia and South Ottia, even with the Five hundred dollars USD from Russia offered to Belarus. Dairy products were banned for Belarus from Russia.
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Many other trade war examples are happening, and many of them are still going on, harming the global economy. They can be really bad to all the citizens, while they may be unable to purchase some product due to the trade war, or experiencing a much higher price.
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What has caused these problems to exist in the world?
1.
The Trade War between China and America started in 2018 by President Donald Trump with extra tariffs and barriers setted to force it to change due to what was claimed by the United states “unfair trade practice” . It is still going on till today.
The first reason caused the Trade War happened due to what calls “alleged unfair trade practice'' claimed by President Donald Trump in 2018, He threatened China for months to impose sweeping tariffs. For many years, China has pursued industrial policies and unfair trade practices—including dumping, discriminatory non-tariff barriers, forced technology transfer, over capacity, and industrial subsidies—that champion Chinese firms and make it impossible for many United States firms to compete on a level playing field. Many plans announced by Chinese government like “Make in China 2025” have harmed American companies in not only the United States but also other countries.
The second reason the Trade War happened is about international trade. When United States and other developed countries like United States occurred in the industrialized age, they took way more advanced chances compare with that of developing countries like China to use their sources form an economy system called “Trade Barrier” which means only particular countries inside the buried get to trade between countries with higher level goods like chips. But the problem is if a developing country intends to get into one of those barriers, it takes high cost which those developing countries couldn’t afford. So some help from developing countries is necessary. They improve developing countries’ ability to purchase goods and services, so goods could be purchased by developing countries, to maximize benefits for those countries in the “Trade Barrier” before. To form a win-win situation.
But this situation has an extreme value when developing countries’ productivity keeps increasing, it would eventually become a competition between developing and developed countries. Developing countries always have cheaper labor fees, and they would become the advanced countries in the game, gradually threatening developed countries’ interests.
That is what happened between the United States and China. And this relationship, those help being given by the United states directly to China has changed from cooperation to competition. Which gradually got into the Trade War.
What has caused these problems to exist in the world?
2.
The Milk War was a trade conflict between Russia and Belarus in June 2009. The whole thing started from Russia allegedly attempting to pay Belarus US$500 million to claim the independence of Abkhazia and South Ossetia. Russia then banned the import of dairy products from Belarus, citing alleged health concerns. The trade conflict ended on June 17, 2009, when Russia announced that it would lift the ban.
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The first reason directly caused the Milk War due to Belarus’s rejection of recognizing the independence of Abkhazia and South Ossetia. Russia and Belarus are two countries treated nicely to each other because they were parted from the Soviet Union in 1991. But That decision made by Belarus’s government changed their relationship. Russia threatened another Milk War in 2013 and reimposed temporary bans on Belarusian dairy products in 2017. Russian concerns include Western sanctions that supposedly allow Belarus to take advantage of the market by producing products of inferior quality. In turn, Belarusian producers claim that Russia has imposed harsh obstacles on them. Belarus has objected to these trade wars, stating that they contribute to the country's international isolation.
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The second reason comes after their decision has been made. Belarus asked for negotiation with European Union about certifying Belarusian milk. Which gradually caused Russia’s penalty on Belarus for imposing dairy products. Later in 2009, the Belarusian president claimed his regret on the rejection of the independence of Abkhazia and South Ossetia.
C. What has the United Nation done in attempt to solve the problem?
“To maintain international peace and security; to develop friendly relations between nations; and to foster international cooperation in solving economic, social, humanitarian, and cultural issues.” It has been the same principle for the existence of United Nations since it had been formed in 1919 after World War 2
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So what is the UN doing to help countries developing trade? The UN Development Program(UNDP) founded by all UN countries with staff in 170 countries, helps to support more than 4,800 projects to reduce poverty, promote good governance, address crises, and preserve the environment. The International Fund for Agricultural Development (IFAD) invested more than 15n billion dollars in the program of helping people in rural areas, helps to sell their food to help them with their income, and provides for their families. IFAD has supported more than 240 projects in more than 170 countries. The International Maritime Organization (IMO) is helping with about 90 percent of overseas trade reaching 9.6 tons trade since 2013. They provide safer, secure, and beneficial help for all countries. Helping them with packing, delivering, and arranging. All of these are just a small part of What the UN has done for greater earth, and more importantly to develop trades between countries.
F. How should the United Nations solve these problems?
From a basic level, trade wars are triggered by the feeling of a sense of uniqueness between countries. Or some normal and predictable request has been rejected. Belarus experienced the limitation transported from Belarus to Russia back in 2009 due to the rejection of the claim on the independence of two countries. Belarus learned from it and regretted doing it. First thing in mind, always follow stronger countries, do what you've been told as long as there are no political or regional problems involved. The second thing in mind is about the revenue and benefits of money. For both countries, step one back will be an easier problem to solve. If neither of them steps back, the situation can be hard and unpleasant.
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On the second level of the problem, due to a historical or political issue which gradually makes it happen, in this situation, leaders of two countries should talk, and be open-minded to accept another opinion, talk through all the problems, be honest and nice to other countries will always be a good way. The Belarusian government should do what they have been told instead of playing tricks for more revenue. And Russia should help Belarus to develop and at the same time help itself.
