Summary of La mentira del libre comercio | DW Documental

00:00:00 - 00:40:00

The video discusses the pros and cons of free trade and the trade barriers that the European Union has put in place to protect its industry. It shows how, in Germany, for example, Chinese-made bicycles are subject to a 485% import tax because they are imported as parts instead of as complete bikes. This tax drives Chinese manufacturers to other, cheaper markets, such as Taiwan and Europe, where they can produce their bicycles more cheaply. As a result, thousands of German jobs are at risk, and the Chinese industry has been able to flood the European market with cheap bikes.

• 00:00:00 The documentary, "La mentira del libre comercio," discusses the benefits of free trade and the negative effects of protectionism. It explores the contradictory nature of the trade war between the United States and Europe, as well as the role of free trade in creating global economies. While Germany is not typically seen as an exporter of goods, many of its products are produced in China. The documentary concludes by discussing the benefits of free trade and the need for it in a global economy.
• 00:05:00 The video discusses the Pros and Cons of free trade and the trade barriers that the European Union has put in place to protect its industry. It shows how, in Germany, for example, Chinese-made bicycles are subject to a 485% import tax because they are imported as parts instead of as complete bikes. This tax drives Chinese manufacturers to other, cheaper markets, such as Taiwan and Europe, where they can produce their bicycles more cheaply. As a result, thousands of German jobs are at risk, and the Chinese industry has been able to flood the European market with cheap bikes. In the United States, however, where trade barriers are not as high, Chinese-made bicycles are only able to enter the market at a 15% import tax. This has caused the US industry to collapse, as Chinese-made bikes are much cheaper than US-made bikes. While US companies have been able to resist Chinese competition by producing high-end bikes, the majority of bikes sold in the US are produced in China. This fact has led to the displacement of tens of thousands of American jobs, as Chinese-made bikes have become the dominant brand in the US market.
• 00:10:00 This YouTube video discusses the pros and cons of free trade, focusing on the bicycle industry in Germany. The narrator, a worker in the bicycle industry, explains that despite the benefits of free trade, Germany has been struggling since exports have decreased due to increased tariffs by the U.S. The father of the narrator, who worked in the bicycle industry before it was outsourced to China, says that he lost his job due to the outsourcing and the workers went on strike. He also says that free trade is a "lucrative business" for Germans, as exports reached over 12 trillion euros in 2017. The narrator goes on to say that, while Germany has a surplus of 250 billion euros in exports, the United States has a deficit of 500 billion euros in imports. The video ends with a discussion of the dangers of globalization and how it can hurt those who are not benefiting.
• 00:15:00 The video discusses the negative effects of globalization, specifically citing the displacement of jobs and the loss of factory production in the United States. Parker and her neighbor, Sara, discuss how they have both experienced the negative effects of globalization in their own lives. Sara has made a name for herself online by providing recommendations for American consumers to replace products from foreign countries with products made in the United States. While Parker is not as nationalist as Sara, she does agree that companies should be more transparent about where their products come from. She is also glad to have a wide variety of American-made products to choose from.
• 00:20:00 The documentary discusses how, starting in the 1930s, the United States imposed a rigid protectionism in order to protect its industrial and employment base, which led to Germany doing the same. This led to nationalism and protectionism becoming intertwined, culminating in World War II. Today, we are witnessing a catastrophic development of the global trade system that has shrunk by a third after four years, and we can't imagine it today when the trade global contraction is at 5%. Today, trade protectionism is being called a global crisis. Back then, the retreat was very dramatic and this development could be traced to protectionism-pure and simple-which saved jobs and helped achieve better production standards. Protectionism today is not justified, given China's ample capacity to achieve international prices very low. This makes us lose competitiveness in those conditions, and the union has put in place 53 punitive tariffs on Chinese products. The antidumping measure enjoys the blessing of the world trade organization, which flourishes protectionism and saves our jobs. But these tariffs that the European Union allows itself are not granted to other countries. For Cameroon, mother of a jungle road to a plantation, journeying every day for an hour and a half to return, there are no roads
• 00:25:00 In 2015, Mama Vales cooperative harvested more than two tons of tomatoes from their farm in a distant city and was able to provide sustenance to the entire village. Cebollas, a medicine against gastrointestinal illnesses or an antiseptic, are also made from cebollas. However, due to the increasing importation of European cebollas, Mama Vales' cebollas have become increasingly difficult to sell. This situation has been repeated in other agricultural products, such as maize, and has led to a lack of food in the country. African farmers consume hundreds of thousands of tons of cebollas each year, with Dutch cebollas costing three times as much as local varieties. The issue of cebollas has become sufficiently serious for African farmers to take matters into their own hands and plant mandioca, a plant that is not native to the region. African agriculture is being threatened by the European free trade agreement (EFA) which, among other things, prohibits the raising of tariffs. African farmers will need more time to strengthen their economy before they are able to negotiate free trade agreements with the rest of the world. The overproduction of European cebollas is destroying African markets. Mama Vales, a
• 00:30:00 The positive aspects of free trade are ironic, as countries that support free trade display it when they are particularly competitive in some sectors and only apply protectionism in sectors where they are not as competitive. For example, in Europe, the agricultural sector is protected with tariffs. Swiss President Marcus Rita initiated a referendum on increased security and food quality, and Swiss agricultural unions voted in favor. Markos Ritter is a typical Swiss farmer who knows the dangers of free trade without borders. If free trade occurs freely over borders, he is sure that Swiss food production would move to cheaper countries, where there are no costs for personnel. Comparatively, German farmers earn 50% more than Swiss farmers, despite having free trade. This is maintained through responsible animal husbandry, landscape protection, and subsidized prices for agricultural products. Swiss farmers believe that completely free trade does not ensure sustenance standards, and they use their economic power to purchase cheaper products. This is protectionism in disguise, and this protection is necessary for Swiss farmers to compete in their own country. The protectionism of Swiss farmers costs them money, but it is an important part of their economic sustainability. Swiss agricultural unions voted in favor of increased security and food quality with a referendum on ciudadano-
• 00:35:00 This video, produced by Deutsche Welle, tells the story of how the free trade agreement between Europe and Africa destroyed the small chicken farm of Anesco. The people of the village stopped buying chicken from the country until the government imposed a prohibition on the importation of chicken meat, and the chicken farming sector has since revived in this village where the residents breed chicken. However, with the return of protectionism, this small chicken farm owner is once again happy. She proudly shows off her newly rebuilt chicken coops during the years that they were abandoned due to the high cost of European chicken meat compared to all other poultry in Germany. This protectionist measure was a blessing to Anesco, and everything is back to normal. There is still a need for more protectionist measures in order to protect the country's agricultural and manufacturing products while they can compete with those from abroad. This is how Francisco Madre, the founder of Pan Para el Mundo, sees it. He has been traveling and speaking about the negative effects of free trade on African countries for the past 15 years. Protectionism, according to him, is the only way for these countries to achieve long-term growth and to create jobs. It is also the
• 00:40:00 The video discusses the benefits and drawbacks of free trade and the current trade system. It points out that without any protectionism, the food industry would not be fair for everyone involved. Greater protection is needed in both developed and poor countries, both for the sake of producing local products and to keep prices lower where people have less purchasing power. The true free trade system never existed, and will never exist in the future.