This document discusses cultural diplomacy and multi-lateral trade negotiations. It begins with an outline covering topics like culture and economics, trade in cultural goods using the EU as a case study, and multi-lateral trade negotiations. It then discusses concepts like the ideal conditions for international business, cultural diplomacy strategies of China and the US, and an analysis of cultural employment and trade in the EU. Bi-lateral and multi-lateral trade agreements are explored along with commentary on the NAFTA re-negotiations. The document concludes that cultural diplomacy can help set the foundation for greater cross-border cooperation and consensus needed for successful multi-lateral trade negotiations.

1. Cultural Diplomacy and
Multi-Lateral Trade
Negotiations
Qamber A. Awan
Adv. Master International Trade and Globalization – University Paris 12
MBA International Business Management – University of Latvia

2. Lecture Outline
1-CultureEconomics
2-TradeinCultureGoods– CaseoftheEuropeanUnion
3-Culture,InternationalRelationsandInternationalCompetitiveness
4-InternationalTrade:Bi-LateralandMulti-Lateraltradepartnerships
5-Multi-LateralTradeNegotiations:CommentaryonNAFTARe-
Negotiations,November2017
6-Conclusion

3. People stroll on Dixon Street in Sydney’s de facto Chinatown district. Photo: iStock/Getty Images

4. The most Ideal conditions for
International Business/Trade
 Free trade
 Fair competition
 Trade Balance
 Political stability
 Long-term economic cooperation
 Cross-Cultural cooperation and commitment
 Mutual benefit and colaborative growth
 Incentive for International entrepreneurs
Incentives for general workers
Multi-Lateralism is the product of
cross-cultural understanding anc
cooperation, eg. The EU
The amount of trade as a result
of Multi-Lateral trade
agreements surpasses all
historical and present day, trade
volumes
Multi-Lateralism is a by-product of
Globalization and Peace in the
International system

5. Culture Economics

6. Status-quo, Unionism and Regionalism
History (Post WWII)
a) Achieving the «Status Quo»
c) Unionism (the USSR and the EU)
Historical cultural cohesion between Nations
a) The Baltics
b) The Middle East
c) The North Americas
d) The South Asia etcetra
Culture and Multi-Lateralism
allow us to form trade
partnerships beyond our
geography

7. State Sponsored Cultural Diplomacy
Intended to:
 Shape the perception of a government in the
International community
 Support political objectives
 Promote economic, artistic and cultural assets
 Advance a foreign policy
In case of China cultural
diplomacy expenditure is 5%
of GDP USD 11,2 trillion FY
2016
In case of USA, it is 3,37% of
International affairs budget
FY 2016 ($1,842 billion)
Source: Comprehensive annual report on public diplomacy &
International Broadcasting ~ US advisory commission on
public diplomacy & ifa.de (Institut für Auslandsbeziehungen)

8. Private Sector Cultural Diplomacy
Individual artists (musicians, actors etc)
International festivals/musical tours
Cultural exchange and cooperation programs
Academic institutions
Corporate sector International internships
Tourism and Tour operation
Language institutes (CI, GOETHE, British Council)
Mostly a by-product of
entrepreneurship and
democracy in developed
countries, such as, the USA,
the EU, Japan etcetra
In the post cold-war era,
the US governmental
expenditure on cultural
diplomacy reduced,
making way for private
sector

9. So what China spends on?
Between November 2004 and August 2011, the People’s Republic of China (PRC) established a total of 353
Confucius Institutes (CI) and 473 related Confucian classrooms in 104 countries and regions, aimed at
“developing Chinese language and culture teaching resources and rendering services of the Ministry of
Education available worldwide, meeting the demands of overseas Chinese learners to the utmost degree, and
contributing to global cultural diversity and harmony” (PRC Ministry of Education, 2012)
Promotion campaign in San Francisco, the United States, on Oct. 14, 2017. An event for the new initiative
"Beautiful China -- Journey Along the World Heritage" that seeks to promote China's 52 UNESCO World Heritage
sites to tourists from the United States was held here Saturday. (Xinhua/Wu Xiaoling)
Chinese Film Festival 2017 kicked off at the Aungthabyay Cinema in Myanmar's capital of Nay Pyi Taw on
Sunday, with two Chinese movies -- "Xuan Zang" and "Kung Fu Yoga" depicting the religion and culture of China.
The Chinese Minister of Culture Luo Shugang and Secretary General of the Estonian Ministry of Culture Paavo
Nõgene signed the Cultural Exchange Program 2018-2022 in Hangzhou, Zhejiang Province on September 22.
The existence of the exchange program is based on the continuous cultural collaboration between China and
Estonia.
China welcomes media outlets and think tanks to cooperate and consolidate public opinion while offering
intellectual support for the Belt and Road initiative,” deputy Prime Minister said.
Source: Various press releases of chinese news outlets (Xinhuanet) and ifa (Institut für Auslandsbeziehungen)

10. How much does the USA spend?
Source: Comprehensive annual report on public diplomacy & International Broadcasting FY2016 Budget Data~ US advisory commission on public diplomacy
Here:
SCA – South and Central
AF – Africa
EUR – Europe
EAP – East Asia Pacific
WHA – Western hemisphere
NEA – Near East Asia
PA – Pacific Asia
GDP of the USA is 18,57 trillion
FY2016

11. OCO stands for overseas
contingency operations for
Pakistan, Afghanistan and Iraq
An example of the US expenditure on
Culture and Public Diplomacy in South Asia
Source: Comprehensive annual report on public diplomacy & International Broadcasting FY2015 Budget Data~ US advisory commission on public diplomacy

12. Trade in Culture Goods – Case of the
European Union

13. Government expenditure on Recreation & Culture,
%of GDP
Source: EuroStat Statistics explained

14. Trade in Culture Goods 2008 – 2015
Source: EuroStat Statistics explained

15. Cultural Employment % of Total
Employment
Source: EuroStat Statistics explained

16. Annual Average Growth Rate of Export
of Culture Goods

17. Annual Average Growth Rate of Imports
of Culture Goods

18. Top 10 extra EU-28 Imports of Culture Goods
Source: EuroStat Statistics explained

19. Top 10 extra EU-28 Export of Culture Goods
Source: EuroStat Statistics explained

20. Culture, International Relations and
International Competitiveness

21. Overview: International Relations
The Actors in the International System
a) The impact of State and Non-State Actors
b) Public opinion and perception (populism)
The approach of National Interest: constituents of International competitiveness
a) GDP per capita
b) Trade percent of GDP
c) Trade Balance
d) Foreign Direct Investment
e) Exchange Rate
Developing countries are
countries with GDP per
capita less than
USD30000 per year
Source: International Economics ,
theory and policy by Paul, R
Krugman and Maurice Obtsfeld

22. Inducing Culture in Expanding International
Relations: Globalization and Cohesion
Globalization and the ICT revolution (1990s)
Case of emerging economies
a) China and its OBOR
b) Foreign Direct Investment
Mass Media and Cultural promotion
a) Soft Power Projection
b) Integrated Global culture
“China welcomes media outlets and think
tanks to cooperate and consolidate public
opinion while offering intellectual support
for the Belt and Road initiative,” deputy
Prime Minister said: KBC
The cultural collaboration between China
and Estonia has increased significantly
during recent years. Estonian Minister of
Culture Indrek Saar met his Chinese
colleague in 2016, and the collaboration
possibilities in the fields of creative
industry, intangible cultural heritage and
youth exchange were all discussed

23. International Trade: Bi-Lateral and Multi-
Lateral Trade Agreements

24. Understanding International Trade
Trade flows: Imports VS Exports
a) Should we buy more or sell more?
Tarrifs and Non-Tarrif barriers
a) Should we control what to buy, from whom and on what terms?
Protectionism
a) What about our own domestic producers?
b) Rules of Origin: How much value could be added to a product to be considered as
domestic?
Trade Preference
a) Should we trade with our historical trade partners or look-out for new partners?

25. International Trade Framework
General Agreement on Tariffs and Trade (GATT)
began in 1947 with 23 nations
Multilateral trade agreements, negotiated in rounds
lastig 3-5 years—the eighth round known as the
Uruguay Round (1986-1994) included 123 nations
The first 6 rounds dealt
with tariff reduction;
Tokyo round began to
evaluate other barriers
to trade; the 8th round
resulted in creation of
WTO and GATS

26. World Trade Organization (WTO)
Established 1995— Provides legal and institutional foundation of multilateral trading
systems
Embodies results of Uruguay Round and successor to GATT
Replaces the organizational part of the GATT; the GATT agreement still exists
Headquartered in Geneva
153 nations are members (EU counts as one)

27. Trade Agreements
Bi-Lateral Trade Agreements Multi-Lateral Trade Agreements
1- Concluded individually between two trading
partners
1- Concluded between more than two trading
partners
2- Unilateral and efficient in terms of
negotiations
2- Negotiations last for months
3- Preferential tariffs and MFN 3- Free trade
4- Renewed 1-5 yearly: lower investor
confidence due to changing renewal terms
4- In-place for a long term, ensuring higher
investor confidence
5- Mostly adopted by emerging and developing
economies
5- Mostly adopted by developed economies

28. Trade Deals TRANS-
ATLANTIC TRADE
AND INVES-
TMENT
PARTNER-
SHIP (TTIP)
EU-
CANADA
COMPRE-
HENSIVE
ECONO-
MIC AND TRADE
AGREE-
MENT (CETA)
EU-
SINGA-
PORE FREE
TRADE AGREE-
MENT (EUSFTA)
EU-SOUTH
KOREA
FREE TRADE
AGREE-
MENT
EU-JAPAN FREE
TRADE
AGREEMENT
AND ECONOMIC
PARTNERSHIP
AGREEMENT
(EPA)
EU-UKRAINE
DEEP AND
COMPREHENSIV
E FREE TRADE
AREA (DCFTA),
AS PART OF THE
ASSOCIATION
AGREEMENT
EU-VIETNAM
FREE TRADE
AGREEMENT
Current status Being
negotiated
Being ratified Being ratified Applies
provisionally
since 2011
Being
negotiated
Applies
provisionally
since January
2016
Being ratified
Length of
agreement
(some numbers
are estimates)
At least 250
pages, plus
appendixes and
annexes
1600 pages Over 1000 pages 1432 pages Information not
available
600 pages (Title
IV of the
Association
Agreement +
protocols)
Over 500 pages
Length of
negotiations
and
number of
rounds
15 rounds since
July 2013
13 rounds from
April 2009
From March
2010 to October
2014
7 rounds from
May 2007 to
October 2009
17 rounds from
November 2012
From July 2008
to December
2011, with
remaining
provisions
signed in June
2014
14 rounds from
June 2012 to
January 2016
Elaboration, based on information from the Directorate General for Trade of the European Commission, availablehttp://ec.europa.eu/trade/policy/countries-and-regions/negotiations-
and-agreements/#_partly-in-place
EUTradeAgreements currentlybeingNegotiated,RatifiedorProvisionally
Applied

29. Multi- Lateral Trade Negotiations: Case
of NAFTA Re-Negotiations

30. Salient features of NAFTA
 Trading Partners (USA, Canada, Mexco)
 Trade volume USD 20,7 trillion
 Annual growth 1993-2015 4,6%
 Represents 28% of Global GDP
Government of Canada, Global Affairs Canada www.international.ga.ca
Euroarea GDP USD 11,88 trillion
as of FY2016

31. Commentary on North Atlantic Free
Trade Agreement (NAFTA)
World’s Largest Free Trade Agreement
November 15, 2017, 5th round of NAFTA re-negotiation–
Projected to finalize by March 2018
POTUS’s right to unilaterally withdrawing USA from NAFTA
a) USD55,6billion trade deficit with Mexico
b) Mexico’s «National Pride» PEMEX
c) The BUY AMERICAN Provision on part of US
d) Free-riding on part of Mexico
Source: Forbes Magazine
Mexico accounts for 60%
of U.S. gasoline
exports....and 65% of U.S.
natural gas exports (in
piped gas and LNG)
Mexico has surpassed
Japan and is now the
2nd largest vehicle
supplier to the U.S.

32. Conclusion: Cultural Diplomacy & Multi-
Lateral Trade Negotiations
 Cultural diplomacy sets a foundation for:
a) Greater cross-border understanding and hence cooperation
b) Greater inter-state, inter-dependancy and hence consensus on mutual benefits
c) Eliminates cultural barriers, such as language and rules of business
d) Brings a group of nations together for long-term economic cooperation eg. ASEAN, AU, EU,
SAARC etc
e) Induces public support to long-term economic policies
 Multi-Lateralism is a by-product of cross border cultural cohesion, in that:
a) Allowing colaborative economic growth
b) Fair and uniform trade conditions
c) Much in-line with Globalizations and innovative new trends in trade and commerce

33. References
 International Economics, Theory and Policy 8th edition by Paul. R Krugman and Maurice Obstfeld
Confucius Institute project: China's cultural diplomacy and soft power projection by Su-Yan Pan Vol. 2 Iss 1 pp. 22 – 33
Articulating influence: Toward a research agenda for interpreting the evaluation of soft power, public diplomacy and nation
brands by James Pamment Public Relations Review Volume 40, Issue 1, March 2014, Pages 50-59
EuroStat, available http://ec.europa.eu/eurostat/statisticsexplained/index.php/Culture
 WITS, World Integrated Trade Solutions, available https://wits.worldbank.org/
ifa.de (Institut für Auslandsbeziehungen), available http://www.ifa.de/en/news-press-review/special-review-on-chinas-
cultural-diplomacy/browse/1.html
Carnegie Tsinghua Center for Global Policy, available http://carnegietsinghua.org/2015/04/17/china-s-cultural-diplomacy-
strategy-policy-and-implementation-event-4807
Global Times China, available http://www.globaltimes.cn/content/1068238.shtml
XINHUANET, available http://www.xinhuanet.com
Forbes Magazine, available http://www.forbes.com

34. Thank you!
qamberawan@gmail.com