The positive side of trade wars: fewer imports, a smaller carbon footprint and less need for plastic packaging

Published in South China Morning Post (June 9, 2019)

The trade war raging on between the US and China has hit many businesses. But is it possible that there is a positive side to a reduction in the flow of goods across the world?

Some maintain that trade and globalisation open up economic opportunities and give less-developed economies a chance to upgrade and nurture their businesses. Sadly, there is a propensity for richer economies to exploit this. So, potentially, a trade war that halts unfair exchanges would redress the situation.

With fewer imported goods, people will have to buy more locally and this would reduce their carbon footprint and is better for the environment. Freight for international trade makes up around 30 per cent of all transport-related carbon dioxide emissions from fuel combustion, and more than 7 per cent of global warming emissions, according to the International Transport Forum’s 2016 report.

Sourcing raw materials at home has the added advantage of shoring up local livelihoods, and can lead to better resource management. In urbanised countries, limited space can be developed innovatively; for example, empty roof spaces could be used to grow food hydroponically.

A country unable to import goods will have an incentive to minimise waste. Circular economy concepts can be used – organic waste can be composted or used to generate methane for energy, for example. Trade restrictions can also mean reining in excesses, manufacturing only what is needed, and growing only as much as we need to eat.

With fewer imported products in circulation and a strong demand for local goods, people will take pride in their surroundings and return to more traditional ways of living, better suited to native habitats. Right now, society is too heavily influenced by global brands that urge people to adopt alien cultural habits.

Fast food is one example. Mealtimes used to be important occasions for nourishment and fellowship. Having fresh local produce instead of imported convenience food would help not just to resurrect community dining, but also to improve diets, lowering rates of obesity and diabetes, two of the scourges of modern living.

An additional bonus to restricting the flow of goods is a reduction in plastic packaging. In 2015, roughly 36 per cent of the 448 million tonnes of plastic produced globally went into packaging, according to National Geographic. Much of this is to help transport goods around the world.

Nearly half of all plastic waste is packaging and most of this is neither recycled nor incinerated. A return to biodegradable packaging suitable for transporting shorter distances can only augur well.

Trade wars are not new. In 1816, facing a federal deficit, the government of a newly formed country began imposing tariffs on British goods with the intention of weaning itself off British dependence and developing its own capabilities. That country went on to become the United States of America. We should learn from history.

We should take advantage of the current trade war to reboot our economies away from consumer-driven existences to a kinder and greener way of living. The merits are all there.

Local businesses have a ready-made market of domestic customers without the complications of overseas shipping and taxes. This, in turn, will stimulate local talent; demanding customers, accustomed to high quality standards overseas, can drive up domestic standards. This will increase investment in industry and research and development.

This is not to suggest that we should end up as hermit kingdoms. It is, nevertheless, an opportunity to review what is necessary for us to live responsibly. That way, we can leave a sustainable future for the next generation.

Dr Thomas Tang is CEO and founder of PJ Sustainability Consulting Limited