trade

Esther Bintliff

Fire at Albion Mill, Blackfriars Bridge, London, March 1791. Painting by T. Rowlandson

Fire at Albion Mill, Blackfriars, London,1791. Painting by T. Rowlandson

The history of mass manufacturing is stitched through with accidents and peril. The first factories, which powered the industrial revolution in 18th century Britain, brought death and injury to many workers, including children. Mill fires in the UK were so common that some industrialists bought their own steam fire-engines in an effort to bring down insurance premiums.

The factory model spread fast. By the 19th century, the word ‘sweatshop’ had begun to enter popular parlance, with Charles Kingsley referring to ‘sweaters’ – or garment workers – in his 1850 tract ‘Cheap Clothes & Nasty’ (“Men ought to know the condition of those by whose labour they live”, he warned). Meanwhile, in the US:

“The term ‘sweatshop’… was meant to describe “sweated labor,” work that a big clothing manufacturer contracts out to a smaller firm… The labor was “sweated” because of the conditions of the factories – cramped, crowded, and full of damp heat from the steam-driven pressers.” – Bill Buford, ‘Sweat is Good’, The New Yorker

How did things get better? Safety standards encoded in law, industrial design improvements, the growth of unions, and public outrage helped bring change to the factories of western economies. But all too often, the impetus for reform seemed to require the catalyst of a terrible accident.

Today, the majority of factory accidents (though not all) take place in the developing and newly industrialized world – places like Bangladesh, Pakistan, China and India. The death of more than 200 people this week in a factory on the outskirts of Daka is a challenge both to the Bangladeshi government, and to western retailers.

The cost of change, to some observers, seems prohibitive – but if passed on to western consumers, it might actually be tiny. Jason Motlagh and Susie Taylor report: “An analysis by WRC estimates the garment industry would have to spend some $3 billion over five years to bring Bangladesh’s roughly 4,500 factories up to Western standards. That amounts to less than 10 cents a garment.”

*****

Here are five of the worst factory accidents. There are many, many more. You will notice that we’ve focused on recent decades, but only because these were the best documented online. You may also notice that there are certain factors that the worst incidents have in common. The most frequent is locked doors.

1) May 25, 1911: The Triangle Shirtwaist Factory Fire, New York

Firefighters at the Triangle Shirtwaist Factory, March 25, 1911. Photographer: Brown BrothersDeath toll: 146 people, mostly Jewish and Italian immigrants, mostly women.

The owners of Triangle Shirtwaist, Isaac Harris and Max Blanck, were indicted by a grand jury on charges of manslaughter a few weeks after the fire. You can read a transcript of the proceedings of the case via Cornell University. The chief prosecutor, Assistant District Attorney Charles S. Bostwick, pulled no punches.

“Others ran to the Washington place door. One of these was Margaret Schwartz, now dead. And it is for her death that these defendants are now on trial.

Gentlemen of the jury, that door was locked. Those who ran to that door cried out ‘That door is locked. My God, we are lost.’ They were lost. That locked door barred their escape.”

 Read more

Gideon Rachman

Over the past year, there have been security and war scares all over East Asia – but Taiwan, the traditional hot spot, remained strikingly cool. In recent months, Japan and China have jostled over their disputed islands and the North Koreans have threatened America and the South with nuclear weapons. By contrast, Taiwan has not been at the centre of a good war scare since the Straits crisis of 1996. Visiting the island, a few weeks ago, I was told by a senior member of the security establishment that – “We look like an island of calm in a boiling sea.”

Perhaps the Taiwanese were feeling left out? Because, together with China, they have succeeded in creating some waves over the past week. First, the Taiwanese government staged its first live-fire security exercise since 2008. And this event was swiftly followed by the revelation that China has deployed missiles near the island that are capable of threatening American aircraft carriers. This is significant, because the carriers are the basis of American power in the Pacific. And, in the Straits crisis of the mid-90s, it was the dispatch of US carriers to the area that signalled that America was taking a tough stance. Read more

Esther Bintliff

Half of all world exports are from the US and Europe. Added together, the two constitute the largest, wealthiest market in the world, accounting for over 54% of world GDP in terms of value and 40% in terms of purchasing power. There are many reasons why a trade deal between the two makes sense in the minds of both policymakers and business-owners (a successful pact would boost growth and jobs in both regions, and offer the US and EU a better chance of standing up to an increasingly powerful China, for example).

So why are negotiators working on the deal probably in for the long haul? One reason is that there are some culturally sensitive areas for both regions – in particular, agriculture and food. Here are some potential sticking points:

For US exporters trying to get their products into the EU –

For EU exporters trying to get their products into the US –
  • Buy America. The US fiscal stimulus of 2009 restricted bidding on iron and steel contracts so that only US producers could take part, or producers from countries with a ‘reciprocal government procurement agreement’

 Read more

Gideon Rachman

(LAURIE DIEFFEMBACQ/AFP/Getty Images)

Hold back the celebratory cupcakes (Getty)

As the FT reported this morning, the US has refused to give the Europeans the big, bold announcement on trade that they were desperately seeking.

The plan was that tomorrow’s US-EU summit would announce the beginning of negotiations to form a trade agreement between the US and Europe. But, for now, the Americans are refusing to play ball.

In Brussels, some may see this as a lamentable lack of vision. In fact, it is simply a welcome injection of some scepticism and realism. Read more