Market Migrations: Birds, EU Economic Security, Friendshoring
Jan 26, 2024
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Discussing bird flu vaccines, EU economic security, and the concept of friend-shoring. Exploring the importance of vaccination in poultry for international trade. Examining the challenges and criteria of friend-shoring. Exploring derisking supply chains and companies leaving China. Exploring the long-term potential of friend-shoring and the importance of research.
The podcast emphasizes the importance of keeping channels open for livestock trade while addressing concerns about vaccination and disease transmission.
The podcast explores the challenges faced by member states in aligning with common policies in the EU's economic security package and the need for further clarity in defining friend-shoring.
Deep dives
Overview of Bird Flu and Vaccination of Poultry Flocks
The podcast discusses the issue of bird flu in poultry flocks and the importance of vaccination. Poultry, such as turkeys, ducks, and chickens, are highly susceptible to respiratory diseases, including influenza, which can devastate entire barnyards. To mitigate this, scientists have developed a vaccine program to help these animals resist influenza. However, the vaccination issue becomes complicated when it comes to international trade in live animals. The World Trade Organization's agreement on sanitary and phytosanitary standards requires animal health standards to be scientifically based on risk assessment. The podcast highlights the importance of keeping channels open for livestock trade while addressing concerns about vaccination and disease transmission.
EU Economic Security Package and Member State Challenges
The podcast explores the EU's economic security package and the challenges faced by member states in aligning with common policies. The package aims to enhance economic security and address issues such as technology transfer, export controls, and investment regulation. However, implementing these measures involves navigating the tension between the authority of the EU Commission and member states. While the package emphasizes coordination and alignment with existing multilateral regimes, member states are protective of their individual authorities. The podcast discusses the need for member states to work together and respect multilateral regimes, but notes that bureaucratic infighting and competency disputes often hinder progress. The EU's focus on economic security is motivated by concerns over competitiveness and the need to protect critical technologies. However, the podcast suggests that further clarity is needed in defining friend-shoring, which involves establishing criteria for countries considered as friends.
Understanding Friend-Shoring and Rearrangement of Globalization
The podcast explores the concept of friend-shoring and its implications for global supply chains. While the precise definition of friend-shoring remains unclear, it generally refers to seeking partners that are morally compatible and reliable in terms of security and commercial interests. The idea of friend-shoring aligns with efforts to derisk supply chains and ensure resilience. The podcast highlights the need for research and examination to understand the effectiveness of friend-shoring as a long-term strategy. It also acknowledges that globalization is undergoing rearrangement, with companies reevaluating supply chain locations to optimize profitability and reduce risk. The discussion emphasizes the importance of providing guidance to businesses and clearly defining which countries are considered 'friends' in the context of friend-shoring.