Arancha González, Executive Director of the International Trade Centre

With surprising passion and extensive knowledge, Arancha González, the Executive Director of the International Trade Centre, spoke to the AIC on May 6, 2019 about the current stakes for global trade today. Marking the club’s 790th luncheon, Ms. González addressed a captive audience of nearly 50 people.

“It’s a super interesting moment to be alive”, González said. While international trade used to incite yawns of boredom, in the past several years it has become the center of global discussions. According to Ms. González, this is due to the convergence of several events and factors we are struggling to cope with.

Three revolutions are affecting international trade: a digital revolution which impacts how people work and the future of work, an ecological revolution which has seen huge changes in consumer behavior, and a social revolution from citizens who are reclaiming their social, civil and human rights. In addition, González further stated, there has been a profound effect of the US elections on global trade. The use of unilateral trade agreements in American politics as a measure to handle deficits, the geopolitical situation with China, and the desire to increase investment in the US are arguments that have been used in the US political sphere and are unprecedented.  The approach is one of a “zero-sum” game, as opposed to a “win-win” situation, which is normally the basis of trade.

Added to these factors is a World Trade Organization in crisis. The WTO has not been able to pivot as the world has moved from trading mostly goods to trading mostly services, and there is no longer a rich North and a poor South, nor developed and developing countries, but rather a multitude of shades of development which do not squeeze in to the traditional constructs.  This new situation is not addressed by the current policies and programs of the WTO.

On a positive note, Ms. González mentioned several constructive trade measures currently occuring, such as the recent Economic Partnership Agreement between the EU and Japan, and the Latin American Pacific Alliance. However, “Good things are happening, but not enough to buck the trend”, she said. Businesses, and especially SMEs, need to be more on the frontline. Domestic policy is also important and can weigh heavily on a country’s international trade. And a reform of the WTO seems inevitable.

“It’s important we set the narrative (on trade) right,” said Ms. González in her final comments.  

Leaving over 30 minutes for questions, Ms. González answered each with energy and conviction, displaying her mastery of the subject and her broad, solution-based thinking. The final question concerned her opinion of the future of Switzerland within the context of international trade. Her answer: “I am very optimistic!” The luncheon then came to close with the requisite gifts to the speaker, including a lifelong membership to the AIC.

Paige Holt, May 6, 2019