Meeting Europe
24 March 2017
Editorial
Free trade brings welfare
Disappointment, frustration and even anger has taken hold of many citizens in our Western welfare states. Because progress has not brought any progress to them, and because globalization has pushed them into a corner where they are bearing the brunt. Anyway, that is what they think.
Filip De Jaeger and Fa Quix
Summary » Brexit is a challenge of the 1st order for the Belgian textile, woodworking and furniture industries. A trade-friendly Brexit has to avoid chaos
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» The European Timber Regulation (EUTR) Fedustria supports the demand for an enlargement of its scope 3
» CMR restriction proposal for textiles Some steps in the right direction ... but additional modifications are necessary
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» New Skills Agenda for Europe …. Also for companies?
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» Mandatory labelling of furniture in France Discrimination and confusion everywhere!
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Fedustria is the Belgian federation of the textile, woodworking and furniture industries.
In Belgium, we represent approximately 1,870 companies (of which more than 90 % are SMEs) that jointly create approximately 38,370 direct employment opportunities, and who achieve a turnover of 11.2 billion euros, of which approx. 70 % in export. The textile industry, which consists of approximately 640 companies and some 19,600 employees, is good for a turnover of about 5.9 billion euros. Woodworking and furniture companies achieve a turnover of 5.3 billion euros, providing work to 18,735 employees in 1,234 company sites.
It cannot be denied that the (lower) middle class has not been able to reap the benefits of free trade sufficiently. However, globalization is not the most important cause of this, but rather the policies that have been made. And that is why these forgotten groups of our society are turning against the so-called ‘establishment’, out of protest, even if they all too often realize themselves that their recourse to populism will not bring a solution. Quite to the contrary, their condition will frequently even worsen. Because what can the weaker groups in society expect from isolationism and protectionism? Giving up free trade and turning back globalization is therefore not the right answer. Because free trade does bring welfare. It increases the living standard of all the involved, to the extent that policymakers do not forget to distribute the benefits of free trade fairly. And this also includes those who threaten to remain behind because of globalization - they, too, must be supported. And the effects of ‘digitalization’ may also not be forgotten in this regard. That demands an inclusive policy. To say it with the words of Dani Rodrik, a top economist of the American Harvard University: ‘We have to combat hyper-globalization in order to save globalization’. Fa Quix, general manager, and Filip De Jaeger, deputy general manager