The politics of international trade

Trading is a normal part of human existence. Naturally, it has been addressed in Islam, as Islam gives solutions to all human affairs. The issue of international trade demonstrates how Islam has comprehensive laws that are compatible with life. International trade also shows how closely tied trade and politics are. Such subjects demonstrate more clearly how Islam and politics are one.

The property Allah(swt) has bestowed

Allah (swt) made property a means by which the son of Adam may benefit in this dunyah. However, Allah (swt) restricted, through His (swt) laws, the ways in which we may acquire it. He (swt) allowed trading as a way to gain interests (masaleh) in this world.

"O You who believe! Squander not your wealth among yourselves in vanity, except it may be a trade by mutual consent." [ 4:29]

"...Allah has permitted trade and forbidden usury." [ 2:275]

The exchange of goods and services has always been an intrinsic part of human society. Historically civilizations have had concepts of barter and exchange. A landmark in the chronicles of man was the advent of common currency. Since the introduction of money, as a medium of exchange, transactions changed dramatically. Business between individuals flourished. This change marked the end of an era when the individual existed as an island. It is in this context that another major landmark in history emerged; the phenomena of international trade. Here trade took on a whole new complexion, becoming intertwined with all the complexities of human interaction. International trade sat hand in glove with politics.

International Trade

International trade is not a recent issue. Generations before the birth of Rasool Allah (saw) the Quraysh established the winter journey to Yemen and the Summer journey to Syria as a major feature of life in Makkah.

"For the familiarity of the Quraysh, their familiarity with the journeys by winter and summer," [ 106: 1-2]

The barren plain surrounded by hills had no agriculture and no industrial base. Trading with the visiting pilgrims became the main stay of the Makkan economy. Trade routes were paramount to life in the valley. The life of Rasool Allah (saw) before revelation ran in harmony with the two journeys, as did the lives of his family and forefathers. An understanding of the caravan journeys is paramount to understanding the cultural and political climate which greeted the first revelation and later the climate that moulded the development of the first state in Madinah.

In the modern world international trade maintains its significance. Camels, horses and the Hilf-ul-fadhul (Pact of Chivalry) have been transformed into trans-national corporations, transcontinental pipelines, transatlantic treaties, super-tankers, superguns, supersonic planes, superhighways, GATT, EMU and NAFTA.

The enormous gains at stake associated with international trade exposes a whole realpolitik. Men fight tenaciously over the development of existing markets and acquisition of new ones. Strong nations haggle and compete for easy markets where their merchandises can be offloaded and from which raw materials can be exported. International relations were to a large extent founded upon the very desire for foreign trade. Undoubtedly, both domestic and foreign trade, have contributed immensely to moulding the global political climate.

Export of culture

Trading and the proliferation of ideas go hand in hand and have always enjoyed a synchronous relationship. Spreading ideas and values creates demand and makes cultures more disposed to accept foreign products to satisfy newly awakened desires. Congruously, trade is a highly effective way of spreading and promoting ideas. Adopting the products and the ideas of other nations is often seen as the means to achieving similar successes, even if such ideas emanate from a source which contradicts your own viewpoint.

This was indeed understood by the Muslims. Islam was brought to SE Asia via the merchants. Similarly much of West and East Africa and the Islands of the coast of East Africa was introduced to Islam by traders. With every new trade stop, Islamic traders brought the Qur’an to the towns they traded with. Alas the latest legacy has seen a role reversal, and it is now the likes of Microsoft, Coca Cola, Kodak-Eastman, Time Warner and the Petroleum giants who dominate. Their pernicious practices and precepts penetrate the hearts and minds of the population in these regions.

Trading routes

Trade routes allow the passage of traders and their wares, allowing the purchase of imports and revenues from exports. Cutting off the trade routes to a community means isolation and control of the community. Control of routes means control of trade and the vast profits that follow. Naturally trade has strategic significance, allowing whole communities to be held to ransom. Christopher Columbus ventured Westward precisely to search for a trade route that avoided the Muslims. The main global commodity of the time, being spice from Indonesia. The Gulf war, Suez crisis etc. have all been about trading routes. Similarly the extensive railway system of India was built by the British for the British. In fact the British Empire was built on the strategic manipulation of straits, canals, passages and land strips.

As mentioned, established trading routes were essential to the Qurayshite community. This in turn affected the whole peninsula. This played a role in the preludes to many of the battles between them and the Madinan State. The Muslims launched numerous raids on the Qurayshite caravans. In the Makkan period of the Seerah these routes had a significance, the importance of which was illustrated by the response of the Quraysh to the conversion of Abu Dhar (ra). His (ra) tribe al-Ghifar lived in the Waddan Valley to the North East of Makkah. They survived not on honest trade or agriculture, but by raiding the laden Makkah-bound caravans en route from Syria. Abu Dhar felt drawn to Makkah and the news of a new prophet. On meeting him (saw) and accepting Islam he exclaimed "...I will announce my conversion to Islam publicly amongst them (i.e. the infidels)". Abu Dhar (ra) went to the mosque, where some people from Quraysh were present, and said, "O folk of Quraysh! I testify that there is no god but Allah, and Muhammad is His slave and Messenger." On hearing that the Quraishi men got up and beat him to near death. Al-’Abbas saw him and threw himself over him to protect him. He then faced them and said, "Woe to you! You want to kill a man from the tribe of Ghifar, although your trade and your communications are through the territory of Ghifar?" They then left him alone. This incident was understood by all concerned that any reprisal from Ghifar would have dire economic ramifications. Although they loved their idols, and found Abu Dhar’s words repugnant, they loved their trade even more. The mere mention of their precious trade route was enough to make the Men of Makkah as inanimate as their gods.

Who is in control today?

Gone are the days of merchants being held to ransom by bandits, or are they? With the domination of global bodies the trade routes are no longer merely passageways through a geographical terrain. A whole network of rules, regulations and institutions seek to regulate, and benefit from other peoples trade. The modern trader must circumnavigate a host of legislative pitfalls and negotiate diverse political pressures. The modern trade route is laden with tariffs, boycotts, taxes, duties, and sanctions. Bandits such as the IMF, World Bank, EU and World Trade Organisation control the passage of trade. They say who can trade with who, what can be traded, what can’t and at what price. These institutions not only govern International Trade, but also use such power as a means to stretch their influence so as to meddle with the internal domestic policies and decisions of nations. The use of trade sanctions as a lethal weapon has really come into its own in the latter part of the 20 th century. The sanctions imposed on Iraq were never used as an alternative to bombing but as an additional tool to augment the damage done by bombing. It is an inhuman blood letting that is not executed by soldier in khaki but by bureaucrats in pin stripes.

The Banana Wars

As another example, to demonstrate how politics is inseparable from trade, early March saw the US and EU in head on conflict. The theory of the conflict was simple; a trade dispute. However, this actuality involved political sleaze, boycotts, thousands of jobs, millions of dollars and cashmere sweaters but most important of all; bananas. The issue showed how US has no friends, merely interests. Free trade when it suits her interests, unilateral sanctions when it does not. US imposed 100% tariffs on Scottish cashmere because Britain and the EU have preferential trade agreements for their former colonies.

This preference has damaged some of the US multinationals that operate in Latin America. Dole, Chiquita and Del Monte control two-thirds of the world fruit market between them. They want the right to penetrate the European market. Europe has condemned the action as serving "purely domestic political motives"; Japan joined the European chorus of condemnation, describing the unilateral US action as "a flouting of global rules."Carl Linder, chief executive of Chiquita, has made huge donations to both the Democrats and the Republican parties to make sure that his voice is heard in Washington. Linder is one of the main players that pushed for the agreement with the WTO on 7 April. It is also noteworthy that the agreement excludes Ecuador, a major Latin American banana producer. The Ecuadorian ambassador to the WTO even complained that the US was not acting in their interests. This is understandable as their banana plantations are not controlled by the US corporations. The banana is just one of the trade issues where the US will act unilaterally; others include steel, GM food and beef raised on hormones.

This illustrates how trade, and its withdrawal, is used as a weapon, to achieve hegemonic goals in accordance with national interests.

Islam has laid down rules for this type of relation

Allah (swt) has given us clear and decisive rules on how to trade, not just vague guidelines about honesty and corruption, but detailed rules relating to taxation, imports, exports, currency, what can be traded, who can trade, when to trade and how to trade. As an example, it would be forbidden for citizens of the Islamic State (Muslims and non- Muslims) to export to nations whom it was technically at war with but not actually fighting, that which would aid their war effort. It would be allowed to trade clothing, foodstuffs and other such commodities with such nations, providing that such goods were not needed by the state for itself. It would be forbidden to trade anything with a country we were actually engaged in fighting, as such a move would constitute rebellion. A citizen of the state would be allowed to import anything that a Muslim is allowed to own. Covenantors would be treated according to the trade clauses of the treaties which the state would have signed with them, whether in imports or exports. However, they would not be allowed to purchase any weaponry or military hardware that may be used in a war effort.

Not referring to Islam as the arbitrator of trade leaves a vacuum, which is filled by the rules of kufr. Rules that benefit the disbelieving nations, boost their trade, exploit our resources, and spread their ideas.

Islam and politics are inseparable

Trading is a normal part of human existence. Islam is a complete way of life giving solutions to all human affairs. Trading affects hundreds of other issues and Islam has detailed rules concerning it. The issue of international trade demonstrates how closely tied trade and politics are. When we consider the laws of international trade we must always consider them in the light of the predominate political climate. Islam and politics are one. Few subjects demonstrate this more than the subject of international trade.

Abdullah Shaheed

Comment 1

Today’s multinational companies have had a devastating affect on the world. They have intermingled business and politics to the detriment of ordinary peoples. Whether by design or accident they have wrecked communities, exploited locals, destroyed natural environments and habitats and meddled in regional politics. However, these multination companies are merely revamped versions of the older models that built the British Empire. The people who run these mega-companies swear that they eschew politics and devote themselves purely to profit, inevitably end up mired in local politics. This is largely because of the way the world is set up at the moment. What comes with vast amounts of money, is vast amounts of power. In the past these companies arrived bearing glass beads, Bibles and Maxim guns but now they bring free software, fast food and sports shoes. The mega-companies, whether old or new still all adopt a similar modus operandi.

These industries have a parallel with pornography. There is the so-called hard and soft porn. Hard core examples, such as The British East India Company, British South Africa Company and United Fruit Company (US), unashamedly used politics to affect profits and profits to affect politics. The softer versions sell satellite TV, soft drinks and oil. Like soft porn, the pernicious aspects of their existence are not as immediately apparent as with their hard-core counterparts.

The British traders in India in the 18th and 19th century interwove a complex pattern of profits, politics, theft and deception. The East India Company came to be a template for later mega-companies. The East India Company, and those that served it, procured what ever they could by whatever foul means possible. Whatever they could ship, sell, barter or purloin was fair game. Together with the political elite that ran India at the time, they conspired to, without pause or apology, to make politics pay. This was seen as good and healthy, eventually it was given the status of being sacred, by some. Corruption, peddling influence, the lining of pockets by local elites and the steady build up of military strength – in the name of progress and a better life for all – became an alibi for imperialism through trade. John Stuart Mills thought the British East India Company one of the most “beneficent” creations known to mankind

These are the hard face of industrial imperialism. Then there is the softer approach to big business. Today companies such as, MacDonald’s in India, Rupert Murdoch in China, and Aramco in the Gulf, all talk of democracy and safe business practiced with consenting consumers. De Beers now spill rhetoric, and not blood, by refusing ‘conflict’ diamonds. Royal Dutch Shell has had to rethink their approach to social and environmental issues across Nigeria. All of the big oil companies have passed themselves off as environmentally friendly. BP changed their company logo to a softer emblem with the all-important shade of green incorporated into it. The TV adds for these oil companies push their idea that they are heavy investors in alternative renewable sources of energy. The lashings of talk re corporate social responsibility are not enough to mask the true nature of these industries.

Soft porn is now sometimes called erotica or steamy romance. This apparently makes it more acceptable, without the seedy raw image of the hard stuff. Whatever it is called it is now becoming more and more widespread, and is met with less and less opposition. This softer focus has been the key for pornographers to gain greater access to greater markets. By analogy, the softer focus of the image of these mega-corporations has contributed to a perception that they have nothing to do with imperialism, bloodshed and oppression. However at the end of the day porn is porn, imperialism is imperialism regardless of how hard or soft the image be.

Comment 2

What culture (concepts and thoughts) does Hindi  dramas bring ?
 

Further Reading

Bretton Woods

Intellectual Property  - A Tool for Colonisation

Latin scripts - A Tool for Colonisation

Boycott Western Culture, not just Cola

McDonalds

Capitalist Catwalk

Non Muslim opinions (note: these do no constitute our exact viewpoint)

Chicken Dollars

The main export of America and the problem of Argentina

What is a derivative?

Mirage of Exports