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1. International Intellectual Property after the New NAFTA

Author:
Jeremy de Beer
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The Canada-United States-Mexico Agreement (CUSMA) is the new high-water mark in international intellectual property (IP) law. CUSMA includes most of the Trans-Pacific Partnership provisions that were suspended in the Comprehensive and Progressive Trans-Pacific Partnership, except for a few pharmaceutical-related provisions amended after signing. Canada will be required to make meaningful changes to domestic IP laws, including copyright term extension, criminal penalties for tampering with digital rights management information, restoration of patent terms to compensate for administrative and regulatory delays, broader and longer protection for undisclosed testing data and other data, new civil and criminal remedies for the misappropriation of trade secrets, and additional powers for customs officials to seize and destroy IP-infringing goods.
Topic:
International Trade and Finance, Regional Cooperation, Intellectual Property/Copyright, NAFTA, and USMCA
Political Geography:
United States, Canada, North America, and Mexico

2. Toward a Robust Architecture for the Regulation of Data and Digital Trade

Author:
Dan Ciuriak and Maria Piashkina
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The rapid digital transformation occurring worldwide poses significant challenges for policy makers working within a governance framework that evolved over centuries. Domestic policy space needs to be redefined for the digital age, and the interface with international trade governance recalibrated. In this paper, Dan Ciuriak and Maria Ptashkina organize the issues facing policy makers under the broad pillars of “economic value capture,” “sovereignty” in public choice and “national security,” and outline a conceptual framework with which policy makers can start to think about a coherent integration of the many reform efforts now under way, considering how policies adopted in these areas can be reconciled with commitments under a multilateral framework adapted for the digital age.
Topic:
International Trade and Finance, Reform, Digital Economy, Multilateralism, and Digitization
Political Geography:
United States, China, Europe, Asia, and North America

3. Work for Others, not Yourself: Globalization, Protectionism and Europe’s Quest for Strategic Autonomy

Author:
Fredrik Erixon
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Protectionism and mercantilism are yet again at the centre of global economic policy. “America First” is the guiding ethos in a good part of US international economic policy. Beijing is taking a larger stake in China’s economy and hand out privileges to domestic firms. Europe is increasingly occupied by achieving “strategic autonomy” and to create European champions at the expense of competition. Old and disreputed economic doctrines are getting a new lease on life. Behind this new orientation in international economic policy stands the old idea that a strong economy is an economy not dependent on others. Human prosperity – our story of rags to riches – tells a very different story. Prosperity is generated when people collaborate and improve our collective intelligence. Open economies are much better at creating wealth because they operate by the principle that people should work for others, not themselves. They specialize – and in the process, they get far more dependent on others. Dependency is a factor of success; economic sovereignty is a sure way of depriving people of opportunity and prosperity.
Topic:
International Political Economy, International Trade and Finance, Global Markets, and Strategic Competition
Political Geography:
United States, China, and Europe

4. Learning to Love Trade Again

Author:
Frank Lavin and Oscar Guinea
Publication Date:
06-2020
Content Type:
Research Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
We are at the moment, the first in seventy-five years, where there is no international consensus in support of trade. Indeed, trade is unloved, unsupported, and even unwanted. There is no shortage of topics in the rhetoric of trade complaints: from the rapid rise of China to Coronavirus as a metaphor for the evils of greater connectivity. Regardless of the validity of these complaints, none of them negate the central truth of trade: countries that engage in trade move ahead, and those that do not, stagnate. Our political leaders disagree. Anti-trade positions are held by leaders across the political spectrum, from Donald Trump to Bernie Sanders. And yet, the public is increasingly warm to the idea of trade. When Gallup asks Americans, “Do you see foreign trade more as an opportunity for economic growth through increased U.S. exports or a threat to the economy from foreign imports?” a record high of 79% see trade as an opportunity, with 18% viewing it as a threat. How did the world arrive at this moment where the benefits of trade are clearly evidenced while trade has become politically toxic? We identify four main factors: (i) U.S. absenteeism from the leadership role; (ii) detachment between trade and security architecture; (iii) no alternative leadership in Europe or elsewhere; and (iv) the cumbersome WTO process. Against this background we put forward five initiatives that will be big enough to count but unobjectionable enough to be adopted. The Big Three. The U.S., EU, and Japan, should establish a consultative body on trade to forge a new approach that allows trade to move ahead in the absence of universal consensus. No harm, no foul. Each of the Big Three should commit to zero tariffs on any item not produced in each particular market. A de minimis strategy. Tariffs should be eliminated on all products where the current tariff is less than 2%. At that level tariffs are simply a nuisance fee. Mind the social costs. Expand the Nairobi Protocols to include health products and green tech. Scrapping import tariffs on medical and green goods would not only encourage additional trade but will also provide health and environmental benefits. Harmonize down. The Big Three should commit that on every tariff line each of the three will be no worse than the next worse. In other words, each of the Big Three will agree to reduce its tariff on every product where it has the highest tariff of the three. These actions will spur the WTO, not undermine it. The measures we propose can be set up on a plurilateral basis that would allow other trading powers to participate. By breaking away from the tyranny of universal consensus, these actions will encourage the trading community – including the WTO – to get back in forward motion. In some respect, convergence between the Big Three is already happening. The EU and Japan signed an FTA that lowers import tariffs between these two economies, while the U.S. and Japan agreed to negotiate a comprehensive FTA. And if China is willing to step up? China should be welcomed into this group if it supports the four initiatives, changing the Big Three to the Big Four.
Topic:
International Political Economy, International Trade and Finance, Global Markets, Trade, and WTO
Political Geography:
United States, Japan, China, Europe, and Global Focus

5. 11th U.S.-China High-Level Political Party Leaders Dialogue

Author:
Joshua Cavanaugh
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
EastWest Institute
Abstract:
A select delegation of leaders from the U.S. Democratic and Republican Parties and the global business community traveled to Beijing, China to meet with senior officials from the Communist Party of China (CPC) on November 18-21, 2019. The discussions were part of the 11th U.S.-China High-Level Political Party Leaders Dialogue organized by the EastWest Institute (EWI) in partnership with the International Department of the Central Committee of the Communist Party of China (IDCPC). Launched in 2010, the U.S.-China High-Level Political Party Leaders Dialogue seeks to build understanding and trust between political elites from the U.S. and China through candid exchanges of views on topics ranging from local governance to foreign policy concerns. The dialogue process consistently involves sitting officers from the CPC and the U.S. Democratic and Republican National Committees. In the 11th iteration of the dialogue, the CPC delegation was led by Song Tao, minister of IDCPC. Gary Locke, former secretary of the United States Department of Commerce, former governor for the state of Washington and former United States Ambassador of China; and Alphonso Jackson, former secretary of the United States Department of Housing and Urban Development; lead the U.S. Democratic and Republican delegations, respectively. Throughout the dialogue, members of both delegations spoke freely on relevant topics including foriegn policy trends, trade disputes and emerging areas of economic cooperation. EWI facilitated a series of meetings for the U.S. delegation, which included a productive meeting with Wang Qishan, vice president of the People’s Republic of China at the Great Hall of the People. The delegates also met with Yang Jiechi, director of the Office of the Central Commission for Foreign Affairs; Dai Bingguo, former state councilor of the People’s Republic of China; and Lu Kang, director of the Department of North American and Oceanian Affairs at the Ministry of Foreign Affairs. The U.S. delegates visited the Asian Infrastructure Investment Bank and met with their president, Jin Liqun, as well as the Schwarzman College at Tsinghua University to engage prominent scholars on the future of the U.S.-China relationship.
Topic:
Foreign Policy, Diplomacy, International Trade and Finance, and Economic Cooperation
Political Geography:
United States, China, Asia, and North America

6. The US–China trade deal and its impact on China’s key trading partners

Author:
Sonali Chowdhry and Gabriel Felbermayr
Publication Date:
02-2020
Content Type:
Policy Brief
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
The US–China Economic and Trade Agreement (ETA) entered into force on 14th February 2020, marking a new phase in their protracted trade and geopolitical rivalry. The ETA includes specific targets for increased Chinese imports of US goods and services, amounting to 200 bn USD over 2020 and 2021. The authors show that these purchase commitments can generate substantial trade diversion effects and market share shifts for China’s top trading partners. In manufacturing, Germany is likely to experience the greatest trade diversion effects in a number of industries such as vehicles (-1.28 bn USD), aircraft (-1.59 bn USD) and industrial machinery (-0.72 bn USD). Moreover, developing countries will be hit if China re-directs its imports towards US suppliers. E.g. Brazil could experience a reduction of 4.95 bn USD in soybeans exports to China in 2021 as a result of the ETA.
Topic:
International Political Economy, International Trade and Finance, Exports, Trade, Trade Policy, and Imports
Political Geography:
United States and China

7. Developing a More Inclusive US Trade Policy at Home and Abroad

Author:
Kimberly Ann Elliott
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
American policymakers have failed to adequately respond to concerns about globalization’s effects and the resulting backlash has taken an ugly turn in recent years. While globalization is only one of many factors contributing to economic dislocation, sluggish wage growth and inequality in the United States, foreigners, and developing countries in particular, are frequently the target of those who are frustrated at being left behind. Yet few realize that US trade policy effectively discriminates against poorer countries. In addition, provisions in trade agreements that tilt the playing field in favor of business interests over those of American consumers and workers also often undermine development priorities in partner countries. American policymakers should rethink the substance and process of trade policy and negotiations to spread the benefits more broadly, at home and abroad.
Topic:
Globalization, International Trade and Finance, Inequality, and Domestic Policy
Political Geography:
United States and North America

8. The Future of North America’s Economic Relationship: From NAFTA to the New Canada-United States-Mexico Agreement and Beyond

Author:
Meredith Lily, Hugo Perezcano, and Christine McDaniel
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The Canada-United States-Mexico Agreement (CUSMA) — known in the United States as the United States-Mexico-Canada Agreement (USMCA) — was reached on September 30, 2018, and will replace its predecessor if successfully ratified by legislatures in all three countries. Several weeks later, on October 14–16, 2018, thought leaders from Mexico, the United States and Canada gathered for the fourteenth annual North American Forum in Ottawa, Ontario. In light of these events, CIGI initiated a trilateral project to anticipate and predict how North American trade and economic relations would unfold in the near term and further into the future. Three authors, Christine McDaniel, Hugo Perezcano Díaz and Meredith Lilly, each from one of the North American countries, explain the importance of the new CUSMA to their respective countries and how economic relations could be reshaped in the coming months and years. Earlier versions of these papers were presented in a panel discussion at the North American Forum.
Topic:
International Trade and Finance, Regional Cooperation, NAFTA, and USMCA
Political Geography:
United States, Canada, North America, and Mexico

9. Does Canada’s Foreign Trade Policy Give Innovating Canadian Firms a Competitive Edge Internationally?

Author:
Olena Ivus and Marta Paczos
Publication Date:
05-2019
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
In recent years, Canada has adopted the Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Canada-United States-Mexico Agreement (CUSMA). Like other modern international trade agreements, CETA, the CPTPP and the CUSMA include protections for innovators’ profits and technologies in the form of intellectual property rights (IPRs) regulations. These trade agreements will have a first-order impact on the volume and composition of trade in goods and innovation with sensitive intellectual property (IP) in Canada, as well as having an impact on global welfare distribution. But is Canada’s membership in these agreements good for Canadian firms looking to compete globally? This paper begins with a review of the IP protections instituted through recent trade deals involving Canada. It discusses the nature and scope of Canada’s IP obligations under CETA, the CPTPP and the CUSMA and explains how these obligations fit within the current Canadian legal framework. The changes in the standards of IPRs under these agreements will have a first-order impact on the volume and composition of trade in IP-sensitive goods, innovation and global welfare distribution and so deserve thorough debate. The paper then proceeds with a broader discussion of the reasons to include IP provisions in international trade agreements and the rationale for international coordination of the IPRs policy. Next, the paper discusses how IP provisions in trade agreements limit the freedom to use IP policy to promote national interests, while acknowledging that the various IP obligations are counterbalanced by several flexibilities, including the right to establish local exhaustion policies. The paper concludes with policy recommendations.
Topic:
International Trade and Finance, NAFTA, Trans-Pacific Partnership, Innovation, and USMCA
Political Geography:
United States, China, Canada, Asia, North America, and Mexico

10. Trump Trade Policy, Exchange Rate Surveillance and the IMF: Back to the Future?

Author:
James A. Haley
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
This paper discusses the nexus between the Donald Trump administration’s trade policy and International Monetary Fund (IMF) exchange rate surveillance. It reviews the evolution of IMF surveillance and the possible implications of incorporating currency manipulation clauses into bilateral trade agreements. Such clauses constitute a key US trade negotiation objective. While they may reflect genuine concern over practices to thwart international adjustment, they could erode the effectiveness of the IMF at a time of transition and resulting tension in the global economy. Managing this tension calls for a cooperative approach to the issue of adjustment, one consistent with the fundamental mandate of the IMF. An approach based on indicators of reserve adequacy is proposed. Such a framework was briefly considered and dismissed almost 50 years ago, which was likewise a period of tension in trade and global monetary affairs. Prospects for success today are equally dim because cooperative measures to assuage adjustment challenges would require repudiation of the view that exchange rate surveillance is about bilateral trade balances and abandonment of the zero-sum game approach to international arrangements on which Trump administration trade actions are based.
Topic:
International Cooperation, International Trade and Finance, Exchange Rate Policy, and IMF
Political Geography:
United States and North America

11. The Way Forward for WTO Dispute Settlement after the Eleventh Ministerial Conference

Author:
Centre for International Governance Innovation
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
In December 2017, trade ministers met in Buenos Aires, Argentina, for the Eleventh Ministerial Conference of the World Trade Organization (WTO), against the backdrop of crisis in the WTO dispute settlement system. After the meeting achieved only modest outcomes, and none related to dispute settlement, the Centre for International Governance Innovation convened a group of experts in Ottawa for a round table discussion of the way forward to restoring and improving the dispute settlement system. The round table discussion addressed three issues: ideas for reforming the operation of the WTO dispute settlement system; US concerns over the operation of the WTO dispute settlement system and the US decision to block appointments to the Appellate Body; and solutions to break the deadlock on WTO Appellate Body appointments and what to do if members are unable to reach an agreement. There was broad agreement that, while the WTO dispute settlement system has made an important contribution to maintaining the security and predictability of the rules-based trading system, there is still room for improvement in its operation. Participants discussed a number of procedural, systemic and substantive issues that could be addressed through reform, some of which might be easily agreed on and implemented, whereas others would require further consideration. It was agreed that the most pressing challenge to the system is the refusal of the United States to allow new appointments to the Appellate Body. While there was sympathy for some of the concerns raised by the United States, participants agreed that the ultimate objectives of the United States remain unclear, and, therefore, participants cautioned against making hasty concessions that might undermine the integrity and independence of the dispute settlement system.
Topic:
International Trade and Finance, World Trade Organization, and Settlements
Political Geography:
United States, Canada, and North America

12. Digital Trade at the WTO: The CPTPP and CUSMA Pose Challenges to Canadian Data Regulation

Author:
Patrick Leblond
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
On the margins of the Group of Twenty leaders’ meeting in Osaka, Japan on June 28-29, 2019, Canada and 23 others signed the Osaka Declaration on the Digital Economy. This declaration launched the “Osaka Track,” which reinforces the signatories’ commitment to the World Trade Organization (WTO) negotiations on “trade-related aspects of electronic commerce.” In this context, unlike its main economic partners (China, the European Union and the United States), Canada has yet to decide its position. The purpose of this paper is thus to help Canada define its position in those negotiations. To do so, it offers a detailed analysis of the e-commerce/digital trade chapters found in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Canada-United States-Mexico Agreement (CUSMA), the North American Free Trade Agreement’s replacement, in order to identify the potential constraints that these agreements could impose on the federal government’s ability to regulate data nationally as it seeks to establish a trusting digital environment for consumers and businesses. The analysis leads to the conclusion that Canada’s CPTPP and CUSMA commitments could ultimately negate the effectiveness of future data protection policies that the federal government might want to adopt to create trust in the data-driven economy. As a result, Canada should not follow the United States’ position in the WTO negotiations. Instead, the best thing that Canada could do is to push for a distinct international regime (i.e., separate from the WTO) to govern data and its cross-border flows.
Topic:
International Cooperation, International Trade and Finance, World Trade Organization, European Union, and Digital Economy
Political Geography:
United States, China, Europe, Canada, Asia, and North America

13. Implications of Foreign Direct Investment, Capital Formation and its Structure for Global Value Chains

Author:
Amat Adarov and Robert Stehrer
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In the age of globalisation, international trade and foreign direct investment (FDI) have become integral elements of cross-country production sharing. In this paper we empirically assess the impact of FDI, as well as capital dynamics and structure, on the formation of global value chains (GVC) and trade in value added at country and sectoral levels based on a database constructed for a sample of European countries over the period 2000-2014. The analysis reveals that inward FDI is especially conducive to the formation of backward linkages while outward FDI facilitates forward GVC participation, especially in high-tech manufacturing sectors. A particularly robust influence of FDI and capital accumulation on GVC integration is identified in the textile and clothing industry. While capital accumulation in general intensifies GVC linkages for most sectors, ICT capital appears to be especially instrumental for backward integration of electrical and transportation equipment sectors.
Topic:
Globalization, International Trade and Finance, Foreign Direct Investment, Trade, and Global Value Chains
Political Geography:
United States, Japan, and Europe

14. China in a World of Orders: Rethinking Compliance and Challenge in Beijing's International Relations

Author:
Alastair Iain Johnston
Publication Date:
10-2019
Content Type:
Journal Article
Journal:
International Security
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Many scholars and policymakers in the United States accept the narrative that China is a revisionist state challenging the U.S.-dominated international liberal order. The narrative assumes that there is a singular liberal order and that it is obvious what constitutes a challenge to it. The concepts of order and challenge are, however, poorly operationalized. There are at least four plausible operationalizations of order, three of which are explicitly or implicitly embodied in the dominant narrative. These tend to assume, ahistorically, that U.S. interests and the content of the liberal order are almost identical. The fourth operationalization views order as an emergent property of the interaction of multiple state, substate, nonstate, and international actors. As a result, there are at least eight “issue-specific orders” (e.g., military, trade, information, and political development). Some of these China accepts; some it rejects; and some it is willing to live with. Given these multiple orders and varying levels of challenge, the narrative of a U.S.-dominated liberal international order being challenged by a revisionist China makes little conceptual or empirical sense. The findings point to the need to develop more generalizable ways of observing orders and compliance.
Topic:
International Trade and Finance, Hegemony, Military Affairs, Information Age, and Liberal Order
Political Geography:
United States, China, and Asia

15. U.S.-China Rivalry in the Trump Era

Publication Date:
08-2019
Content Type:
Special Report
Institution:
World Politics Review
Abstract:
Integrating China into the liberal trade order was expected to have a moderating effect on Beijing. Instead, under President Xi Jinping, China has asserted its military control over the South China Sea and cracked down on domestic dissent, all while continuing to use unfair trade practices to boost its economy. As a result, a bipartisan consensus has emerged in Washington that the U.S. must rethink the assumptions underpinning its approach to China’s rise. But President Donald Trump’s confrontational approach, including a costly trade war, is unlikely to prove effective. This report provides a comprehensive look at the military and economic aspects of U.S.-China rivalry in the Trump era.
Topic:
International Trade and Finance, Military Affairs, Trade Wars, and Economic Policy
Political Geography:
United States and China

16. Towards a Better Financial System

Author:
Anat R. Admati
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
The financial system is fragile and distorted because current rules fail to counter the distorted incentives by banking institutions to borrow excessively and to remain opaque. Better-designed rules to reduce the reliance on debt and ensure that institutions use significantly more equity would enable the financial system to serve society better. Revising counterproductive tax and bankruptcy codes that, together with the extensive safety net offered to the financial system currently encourage dangerous conduct, would also be beneficial.
Topic:
Economics, International Trade and Finance, Finance, Economic Policy, Economic Theory, and Macroeconomics
Political Geography:
United States

17. How to think about finance?

Author:
Atif Mian
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
There has been a major structural shift in financial markets since the 1980s. The world is awash in credit, and credit is cheaper than ever before. I discuss how increasing financial surpluses within parts of the economy have resulted in an expansion in the supply of credit, which has largely financed the demand-side of the real economy. This increasing reliance on “credit as demand” raises some serious policy questions going forward. I discuss the importance of equitable and inclusive growth, fair taxation system and risk-sharing in creating a financial system that promotes prosperity and stability.
Topic:
Economics, International Trade and Finance, Finance, Economic Policy, and Economic Theory
Political Geography:
United States

18. A World Dividing: The International Implications of the Sino-American Rift

Author:
Chas W. Freeman Jr.
Publication Date:
11-2019
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
The Trump administration has declared economic war on China. The United States has raised taxes on Chinese imports to levels not seen since the Smoot–Hawley tariffs of the Great Depression. Over the course of this year, Chinese imports of American goods have decreased by 26.4 percent, while China’s exports to the United States are down 10.7 percent. Washington has embargoed exports to China of a constantly expanding list of high-tech manufactures. It seeks to block Chinese telecommunications companies from third-country markets. The United States has mounted a vigorous campaign to persuade other countries to reject Chinese investments in their infrastructure, notably in the case of 5G telecommunications networks.
Topic:
International Trade and Finance, Global Political Economy, Trade Wars, International Community, and Exports
Political Geography:
United States, China, Asia, and Global Focus

19. Gossip, Corporate Reputation, and the 1905 Life Insurance Scandal in New York

Author:
Oenone Kubie, Rebecca Orr, Mara Keire, and Christopher McKenna
Publication Date:
12-2019
Content Type:
Case Study
Institution:
Oxford Centre for Global History
Abstract:
On the evening of 31 January 1905, six hundred of the richest and most powerful members of New York society descended on Sherry’s Hotel dressed in extravagant costumes designed to resemble the court of the French King, Louis XV. The wealth on display was astounding. Pearls, emeralds, turquoise, and diamonds abounded. Mrs Potter Palmer, the queen of Chicago society, appeared dressed in a diamond tiara, diamond choker, and diamond breastplates. Mrs Clarence Mackay, wife of the chairman of the Postal Telegraph Company and a suffragist, wore a gold and turquoise crown and the train of her dress was so long, that despite the help of her two pages, she was forced to sit out the dancing.
Topic:
International Trade and Finance, History, Capitalism, and Multinational Corporations
Political Geography:
United States, New York, France, and Global Focus

20. The Hudson's Bay Company: Royal Charters, Rivalries and Luxury Hats in the North American Fur Trade

Author:
Jason Saldanha, James Haworth, and Christopher McKenna
Publication Date:
03-2019
Content Type:
Case Study
Institution:
Oxford Centre for Global History
Abstract:
French fur traders Médard Chouart des Groseilliers and Pierre-Esprit Radisson sensed an opportunity in the mid-1650s. During their travels within a North American trade network stretching from Montreal to the Great Lakes, the pair had heard rumours from indigenous Cree communities of a “frozen sea”: a region rich in beaver furs further to the north. The resourceful traders, aware of the European demand for luxury felt hats made from these furs, set out to explore. The two traders were not disappointed upon their arrival at the vast inland sea of Hudson Bay, discovering an abundance of high-quality furs. They quickly identified numerous rivers running from the basin that offered valuable access to the continent’s interior: if a shipping route could be forged from these locations, across the Atlantic and finally to European markets, the Hudson Bay region could re-centre the entire North American fur trade. After failing to obtain French support to establish a trading post in the area – and getting arrested upon their return to Montreal for trading without a licence – Des Groseilliers and Radisson found themselves courting English favour for their venture.
Topic:
International Trade and Finance, History, Capitalism, Commodities, and Trade Liberalization
Political Geography:
United States, New York, Canada, Quebec City, and Global Focus