While international trade relations are in an awkward position with all the talk about tariff increases as well as serious political conflict and combat, the South African Wine Industry received a welcome commitment from the EU based on its economic partnership trade agreement with SADC showing again that international trade is about much more than commerce. Since the early days of Mapungubwe and Marco Polo, the history and cultural significance of globalisation has been truly fascinating.
The exchange of goods, services and capital between countries provides economic benefits, encourages innovation, and supports international relations. No wonder that Trump’s recent tariff threats made the headlines everywhere. We all depend on goods and services that are shared across borders and there is very little novelty anymore in owning something that is imported. In fact, in South Africa today, it might be more valuable to have something that was produced locally! The origin and history of international trade is, however, about much more than exchanging goods. It tells the story of progress and expansion and resulted in such cultural enrichment that it is almost impossible to consider a world without global insight and trade.
So, when and where did it all start? South Africans are familiar with the trading along the Spice Route as it is such an important part of our history, but global trade is much more than the hunger for cinnamon, pepper and cloves. I am grateful for the wonderful global trade timeline provided by BBC.com sharing 18 goods that shaped our world over centuries to what we accept as today’s reality.
While the debate around wine as part of a responsible and healthy modern lifestyle might affect our export figures lately, it was wine who got us started on what has become the very exciting and essential global trade! In the 6th Millennium BC, wine came from Georgia. It was made using the Qvevri method of fermenting and storing wine in earthenware pots, buried in the ground for temperature control. One can hardly imagine transporting those today, despite having reefer containers and all kinds of clever packaging. In the Bronze Age, Georgia is believed to have supplied wine to the first cities of the Fertile Crescent, including Babylon and Ur. The wine was carried in amphorae – large, ceramic vases with handles.
We all probably learned about the Spice Trade in one of our first history lessons. Europeans trying to avoid the market prices and taxes of Arabian middlemen, explored a direct route to the East around the southernmost point of Africa. Long before the Dutch station was established at the Cape of Good Hope, though, the spice trade already flourished around Arabia, setting the scene for the development of our global trade history. The Silk Route was just as important with a network of roads between China and Rome. Chinese silk merchants wanted to exchange their valuables for the much-coveted Arabian horses of Central Asia. The overland Silk Route was later replaced by the faster sea routes.
Access to fruit and fresh water was the reason for establishing halfway stations along the Spice Route. As a rich source of vitamin C, citrus was essential to sailors trying to prevent scurvy on their long sea voyages and as a result these trees were planted along the trade routes and spread around the world. Native to the foothills of the Himalayas, citrus reached the Mediterranean around the 15th century and in South Africa today, it accounts for 61 percent of fresh fruit exports.
Gold is another important part of the South African economy and our international trade. The history of gold trading can be traced back to ancient civilizations, where gold was used as a form of currency and as a symbol of wealth and power. In ancient Egypt, gold was also used as a medium of exchange and in ancient Rome, gold coins were minted and used as currency. The gold standard was widely adopted during the 19th and early 20th centuries, and it played a significant role in the global economy until it was eventually abandoned, and gold began to be traded more like other commodities, with the value determined by supply and demand. (Read more)
For some a good cup of tea might be worth its weight in gold and low and behold, tea also made its mark in the early days of global trade. Originating from China it was first exported to Japan as a drink for monks and the elite before it made its way to Europe much later.
With wine and tea playing an important role in establishing international trade relations, what about coffee? Ethiopia is regarded as the birthplace of coffee, but commercial cultivation took place in Yemen around the 15th century from where coffee first made its way to Mecca and later to Europe where similar to wine and tea, it made a very important cultural contribution. Whisky is another beverage of importance in this conversation, playing a role since the 12th century when it was traded from Scotland and Ireland.
Of course there was also important trading of amber, glass and paper and how bland would life be without salt and how dreary without flowers?! Semiconductors became essential from a computing perspective, as did wind turbines for electricity and when women entered the workforce in the 20th century, handbags became an essential item leading to an increased trade in crafted leather bags!
It is hard to imagine surviving without the prospect of exports and imports. While we might be worried about how stressed trade relations might affect our citrus exports to the US and the continued production and export of luxury vehicles, the wine industry is delighted that our agreement with the EU has resulted in €15 million (approximately R 311 million) to drive inclusive growth in the South African wine sector. Alongside its focus on tariff-free export benefits, the agreement is designed to transform and grow the local industry. The funding from the European Union Wine and Spirits Fund aims to unlock new business opportunities and support the development of black-owned brands, farms, education, and enterprises across the wine and spirits value chain.
Yes, international trade implies economic survival for many, but it is also about all-important interaction, humanitarian aid and being able to enrich cultures across borders sharing our various sources and skills.