The politics of international trade
17-10-2007
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