Coppolaro, Lucia

McKenzie, Francine

English

Repositório da Universidade de Lisboa

A Global History of Trade and Conflict since 1500

Universidade de Lisboa: Repositório.UL

A Global History of Trade and Conflict Since 1500Also by Lucia CoppolaroTHE MAKING OF A WORLD TRADING POWER: The European Economic Community (EEC) in the GATT Kennedy Round Negotiations (1963–67)Also by Francine McKenzieREDEFINING THE BONDS OF COMMONWEALTH 1939–1948: The Politics of PreferencePARTIES LONG ESTRANGED: Canada and Australia in the Twentieth Century (co -edited with Margaret Macmillan)A Global History of Trade and Conflict Since 1500Edited byLucia CoppolaroPost- Doctoral Research Fellow, Institute of Social Sciences, University of Lisbon, PortugalandFrancine McKenzieAssociate Professor, Department of History, University of Western Ontario, CanadaEditorial matter, selection and Chapter 8 © Lucia Coppolaro and Francine McKenzie 2013Remaining chapters © Respective authors 2013All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission.No portion of this publication may be reproduced, copied or transmittedsave with written permission or in accordance with the provisions of theCopyright, Designs and Patents Act 1988, or under the terms of any licencepermitting limited copying issued by the Copyright Licensing Agency,Saffron House, 6–10 Kirby Street, London EC1N 8TS.Any person who does any unauthorized act in relation to this publicationmay be liable to criminal prosecution and civil claims for damages.The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988.First published 2013 byPALGRAVE MACMILLANPalgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited,registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS.Palgrave Macmillan in the US is a division of St. Martin’s Press LLC,175 Fifth Avenue, New York, NY 10010.Palgrave Macmillan is the global academic imprint of the above companiesand has companies and representatives throughout the world.Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countriesThis book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin.A catalogue record for this book is available from the British Library.A catalog record for this book is available from the Library of Congress.Softcover reprint of the hardcover 1st edition 2013  978-1-137-32682-9ISBN 978-1-349-45998-8             ISBN 978-1-137-32683-6 (eBook)DOI 10.1057/9781137326836vContentsList of Figures and Tables viiiAcknowledgements xNotes on Contributors xiiList of Abbreviations and Acronyms xvIntroduction: The Intersection of Trade and Conflict Since 1500 1Francine McKenzieA short account of the long history of trade and conflict 5Chapter summaries 11Conclusions 17Notes 181 Trade and Conflict in the South China Sea: Portugal and China, 1514–23 20 Timothy BrookTrade and tribute 22The contradiction between trade and diplomacy 24Debates over trade policy 26Conflict 29Consequences for trade with China 34Notes 362 Portuguese Resilience in Global War: Military Motivation and Institutional Adaptation in the Sixteenth- and Seventeenth- Century Cape Route 38 Leonor Freire CostaA world of contracts 41Endogenous challenges 46Distribution of spoils 53Conclusions 59Notes 603 An Explosion of Violence: How the Haitian Revolution Rearranged the Trade Patterns of the Western Hemisphere 62 Steven TopikThe historiography of the Haitian Revolution 62Trade and conflict 65vi ContentsThe new modern world of the late eighteenth century or:  sweet industry 66Saint Domingue 67The United States and Haiti 71Cuban coffee 74Cuban sugar 75The USA starts producing sugar in Louisiana 77Brazil changes the world coffee economy 79Conclusions 82Notes 834 Lifting the Continental Blockade: Britain, Portugal and Brazilian Trade in the Global Context of the Napoleonic Wars 87 José Luís CardosoThe Continental Blockade and Napoleon’s imperial project 88The economic scope and limits of the Continental Blockade 92The opening of Brazilian ports and British trade interests 96Receptivity to the British and their welcome in Brazil 99Conclusions 102Notes 1025 Retreat from Globalization: Britain and the Renewal of Imperial Trade between the Two World Wars 105 Tim RoothThe British case 106Treaty- making and imperial preferences 109International repercussions 117A paradox of economic performance and postwar policy 118Conclusions: patterns of integration and disintegration 121Notes 1226 Trade and Conflict in the Rhetoric of Winston Churchill 124 Richard ToyeChurchill’s involvement in the politics of trade 125Churchill’s defence of free trade and empire 127Pragmatism and politics: Churchill’s defence of protection and imperial trade 132Conclusions 138Notes 1397 War, Revolution and the Great Depression in the Global Wheat Trade, 1917–39 142 Gregory P. MarchildonThe impact of the First World War and the Russian Revolution  on the wheat trade 145Contents viiWheat and war: exploring the causes of the Great Depression 147Home market protectionism and the Smoot- Hawley Tariff 152The British Empire, the Ottawa Conference and trade diversion 155The International Wheat Conference of 1933 157Conclusions 158Notes 1598 Trading Blocs and Trading Blows: GATT’s Conflictual Path to Trade Liberalization, 1947–67 163 Lucia Coppolaro and Francine McKenzieWar, conflict and the establishment of GATT 164Liberalization and development: stalled agendas 167The Kennedy Round: liberalization revitalized but some left behind 174Conclusions 181Notes 1849 Nixon’s War with the International Economy 188 Thomas W. ZeilerMoney- driven trade policy 190Global competition 192Trade as the symptom 194Textile trade war 196Camp David and the import surcharge shock 198Negative impact? 204Conclusions 207Notes 208Conclusion: Dismissing the Kantian View of Trade and Peace 211Renato Galvão Flôres, Jr. Notes 219Bibliography 220Index 239viiiFigures2.1  Production costs 472.2  Economies of scale 512.3  Rate of risk in the Portuguese Cape Route 525.1  Percentage share of the Dominions’ exports to the UK 1095.2  GDP per capita, selected countries, 1929, 1932 and 1937 1197.1  Wheat production, the Big Four, 1922–38 crop years 1508.1  Average EEC and USA tariffs on dutiable imports, as a percentage of cost, insurance and freight (CIF) value, before and after the Kennedy Round 1778.2  Developed and developing countries’ market share in textiles and clothing 179TablesI.1  Annual rate of growth of world trade 6I.2  World exports as a percentage of total world production 62.1  Capital invested in the Botecabelo (in reais): contracts at partido do meio 432.2  Distribution of returned cargo: pepper 442.3  Shipping costs 502.4  Portuguese Cape Route shipping 512.5  Auction for the contract of duties and freights of the carracks arrived in 1617 542.6a The Armada of 1615: costs incurred by the Crown 562.6b Rates of return under new institutional arrangements 573.1  USA coffee imports from the West Indies, 1790–91 723.2 Brazil’s share of world coffee exports, 1850–1900 793.3  USA and European share of world coffee imports, 1850–1900 805.1  Total retained imports into the UK and the share of empire and selected Dominions, 1929, 1932 and 1937 1135.2  Imports into the UK from selected foreign trade agreement countries, 1929, 1932 and 1937 1145.3  UK exports to North European trade agreement countries 1155.4  UK exports to selected Dominions 1157.1  The Big Four exporters’ share of world wheat trade, 1909–37 146Figures and TablesList of Figures and Tables ix7.2  Average annual prices of imported wheat in the United Kingdom, 1922–38 1487.3  World wheat stocks, the Big Four exporting nations and the world, 1922–39 1497.4  Four major European wheat importers, consumption 1527.5  Import duties on wheat 1538.1  GATT Rounds and their main results 1688.2  Share of world trade 171xAcknowledgementsThis volume emerged from a workshop held in Lisbon in July 2010 at the Institute of Social Sciences of the University of Lisbon. Maya Shatzmiller provided the original spark to begin thinking critically and historically about the relationship between trade and conflict. The University of Western Ontario, the Institute of Social Sciences of the University of Lisbon, the Portuguese Foundation for Science and Technology and the Bank of Portugal generously provided fund-ing to host the workshop where the contributors, along with Maya Shatzmiller, Bruce Muirhead and Sebastian R. Prange, presented their preliminary findings.This was an unusual gathering of historians. We are more likely to attend differently specialized academic meetings with scholars who fall into our respective subfields, be it Chinese history, meetings of medievalists or diplomatic historians. This was a golden opportunity to situate our studies in a global historical and comparative framework and in a 500- year period: the exchanges amongst us were enlighten-ing and deeply educational. Economists and economic historians also participated in the workshop. Economists and historians rarely find the opportunity to speak directly. The questions, observations and sugges-tions of economists challenged and enriched the case studies as they moved forward for inclusion in this volume. Renato Galvão Flôres, Jr., one of the economists present, subsequently joined the group of con-tributors and brought his sharp insights and wide- ranging experience as a practitioner and scholar to bear.The editors are grateful to their home institutions for their sup-port for this project. The contributors have been exemplars of pro-fessionalism, generosity and dedication. Their contributions to the shaping of the volume exceed their individual chapters. They have also been exceedingly patient with enthusiastic, and sometimes demanding, editors. There are many debts to our respective net-works of colleagues who have read earlier drafts of these chapters: their thanks are expressed in individual chapters. The anonymous reviewer made many constructive suggestions and the volume is better for them.Palgrave Macmillan has been the ideal home for this volume. Jen McCall and Holly Tyler have been wonderful to work with: clear, reason-able and decisive. Roza I. M. El- Eini has been thorough in  copy- editing Acknowledgements xiand proofreading the book. Tyler Turek’s work on the Index is much appreciated. We would like to thank our families for their support and forbear-ance: they have heard a lot about trade and conflict over the last few years. Michael Szonyi and Fabrizio Fissi must be singled out for their encouragement.xiiNotes on ContributorsTimothy Brook is Professor of History at the Department of History and Institute of Asian Research at the University of British Columbia. He is the author of a dozen books on Chinese history. Vermeer’s Hat (2008) intersects Ming China with world history. The Troubled Empire (2010), part of the six- volume History of Imperial China that he edited for Harvard University Press, reconsiders China from 1260 to 1644 from an environmental perspective. His most recent book, on the integration of geographical knowledge between Europe and Asia in the seventeenth century, is entitled Mr. Selden’s Map of China (2013).José Luís Cardoso is Research Professor and Deputy Director of the Institute of Social Sciences of the University of Lisbon. His research interests include the history of economic thought, economic history and the methodology of economics, and his expertise is on the eight-eenth and nineteenth centuries. His publications include several books and articles on the history of economics from a comparative perspec-tive such as A History of Portuguese Economic Thought (1998, co- author), and Paying for the Liberal State: The Rise of Public Finance in Nineteenth- Century Europe (2010, co- editor).Lucia Coppolaro is a Post- Doctoral Research Fellow at the Institute of Social Sciences of the University of Lisbon. Her research interests include the economic and political history of contemporary Europe, the his-tory of international relations since 1945, and the history and political economy of international trade. She has written widely on GATT and the European Union’s trade policy and has published numerous arti-cles in journals, including International History Review and Contemporary European History. She is also the author of The Making of a World Trading Power: The European Economic Community (EEC) in the GATT Kennedy Round Negotiations (1963–67) (2013).Leonor Freire Costa is Professor of Economic History at the School of Economics and Management of the Technical University of Lisbon. Her research focuses on maritime and colonial histories. Her publications include Naus e Galeões na Ribeira de Lisboa. A Construção Naval para a Rota do Cabo no Século XVI (1997), and (with M. Manuela Rocha and Tanya Araújo) ‘Social Capital and Economic Performance: Trust and Distrust Notes on Contributors xiiiin Eighteenth- Century Gold Shipments from Brazil’, European Review of Economic History, 15 (1) (2011).Renato Galvão Flôres, Jr. is a former (elected) member of the Permanent Group of Experts of the Committee on Subsidies and Countervailing Measures, World Trade Organization, Geneva. He was a negotiator for the Fourth Protocol of the Agreement on Telecommunications, after the Uruguay Round, and has served in several trade delegations from Brazil. He is currently Professor at the Graduate School of Economics (EPGE), Fundação Getulio Vargas (FGV), in Brazil. His research inter-ests are in development economics and sustainable growth and trade (theory and policy) as well as in the relations between international law, politics and economics, within the context of globalization. He co- edited the Regional Integration Manual (2011).Gregory P. Marchildon is Professor and Canada Research Chair in Public Policy and Economic History at the University of Regina. He has published extensively on Canadian economic and policy history from a comparative perspective. He is the author of Profits and Politics: Beaverbrook and the Gilded Age of Canadian Finance (1996), and Canada: Health Systems in Transition (2012), both published by the University of Toronto Press.Francine McKenzie is Associate Professor in the Department of History at the University of Western Ontario. Her research interests include the history of international relations and global trade, the British Commonwealth and postwar reconstruction after the Second World War. Her recent publications relate to settler economies, the GATT and American foreign economic policy. She is the author of Redefining the Bonds of Commonwealth 1939–1948: The Politics of Preference (2002), and has co- edited Parties Long Estranged: Canada and Australia in the Twentieth Century (2003).Tim Rooth is Emeritus Professor of Modern Economic History at the University of Portsmouth. His research interests relate to the twentieth- century international economy and British Commonwealth economic relations. He is the author of British Protectionism and the International Economy: Overseas Commercial Policy in the 1930s (1993), and has pub-lished numerous articles and book chapters, most recently on settler economies.Steven Topik is Professor of History at the University of California, Irvine. He is an expert on the history of Latin America, the study of commodities, especially coffee, and political economy. He co- wrote xiv Notes on Contributors(with Kenneth Pomeranz) The World that Trade Created: Society, Culture, and the World Economy, 1400 to the Present (1999). He co- authored with Allen Wells ‘Commodity Chains in a Global Economy’, in Emily Rosenberg (ed.), A World Connecting (2012). He co- edited with Mario Samper Crisis y transformaciones del mundo del café (2012).Richard Toye is Professor of Modern History at the University of Exeter. His expertise lies in the fields of rhetoric, British economic and political history, international economic institutions and the British Empire and Commonwealth. His books include The Labour Party and the Planned Economy, 1931–1951 (2003), Churchill’s Empire: The World that Made Him and the World He Made (2010), and Rhetoric: A Very Short Introduction (2013).Thomas W. Zeiler is Professor of History and International Affairs at the University of Colorado, Boulder. He has published books on trade, foreign policy, cultural diplomacy (via baseball), globalization and the Second World War. His recent publications include Annihilation: A Global Military History of World War II (2011), Ambassadors in Pinstripes: The Spalding World Baseball Tour and the Birth of the American Empire (2006), and Globalization and the American Century, co- written with Alfred E. Eckes, Jr. (2003). He has served as President (2012) of the Society for Historians of American Foreign Relations and is editor of the journal Diplomatic History.xvAbbreviations and AcronymsCAP Common Agricultural PolicyCCP Common Commercial PolicyCET Common External TariffsDCs Developing countriesDG Directorate GeneralEEC European Economic CommunityEFTA European Free Trade AssociationEIC East India CompanyEU European UnionGATT General Agreement on Tariffs and TradeGDL GATT Digital Library, Stanford University, CAGDP Gross Domestic ProductGSP General System of PreferencesITO International Trade OrganizationLDCs Less- developed countriesLTA Long Term Agreement on Cotton TextilesMFN Most- favoured nationNATO North Atlantic Treaty OrganizationNLA National Library of AustraliaNSC National Security CouncilOECD Organisation for Economic Co-operation and DevelopmentOEEC Organisation for European Economic Co- operationOMB Office of Management and the BudgetOPEC Organization of the Petroleum Exporting CountriesQRs Quantitative restrictionsRTAA Regional Trade Agreement ActTEA Trade Expansion ActUN United NationsUNCTAD United Nations Conference on Trade and DevelopmentVOC Vereenigde Oost- Indische Compagnie or Dutch East India CompanyWTO World Trade Organization

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A Global History of Trade and Conflict since 1500

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