Friday, January 18, 2008

Trade Between the UK and China to Expand

Gordon Brown is on a visit to China and part of the news coverage from BBC news captured the discussion of the expected expansion of trade between the UK and China over the medium term. However, I am inclined to believe that neither the British Prime Minister nor premier Wen Jiabao are sure that trade between the two countries would expand 50% by 2010. How could they be so specific?

Surely, the two must be aware that there's no way that international trade is bound by a linear formula that would tell about the amount of future trade flows with that degree of accuracy. Indeed, through trade agreements and mutual cooperation agreements, the trade would expand. Still, the idea about pinning a specific number is meant to impress the press and the businessmen in the audience.

What is required is an unequivocal undertaking towards unilateral trade liberalization which would expand trade between the two nations and other nations too. There's no need to pluck from a magic hat to illustrate the importance of trade between the two nations. impressive part about the event is the confidence that Gordon Brown exhibits that Chinese manufacturing could be gelled with the UK's service industry advantage for the mutual benefit of both.

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