this post was submitted on 18 Jul 2026
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How do trade deals work under capitalist countries? (lemmygrad.ml)
submitted 2 weeks ago by reallybigShell@lemmygrad.ml to c/asklemmygrad@lemmygrad.ml
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How does the government of a capitalist country say "we'll trade you 50,000 tons of steel for $1,000,000" or something, they don't have direct control over the steel mills, so how does the government ensure their side of the trade deal is done? I get that in socialist countries this isn't an issue because it's a command economy (I think)

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[–] EmmaGoldman@hexbear.net 14 points 2 weeks ago

Many nations, even capitalist ones, have state-owned enterprises. A large percentage of trade deals in this century are free trade agreements or tariff reduction negotiations which involve no material goods but these aren't the only types of trade deals.

The US likes to make deals trading ownership of mineral/oil extraction rights to American corporations for US military support (read: a shakedown). Western countries use debt as a weapon with tools like the IMF and World Bank. "Give us your cash and minerals and neoliberalize your economy or we kill you. You're now in debt. Be glad we're not still colonizing you the old way."

China has been making a lot of deals that break the mold of Western deals. A recent-ish example is paying off Ghana's loans from Western countries and refinancing at a lower interest rate; duty-free entry (no tariffs) on goods from Ghana exported to China; and building infrastructure like around 442km of roads, plus bridges, schools, hospitals in exchange for around 5% of Ghana's refined bauxite production.

You get: Roads trade-offer We get: Bauxite

Bridges‎mystery-emotemystery-emote ≤100% ROI on loan

Schools

Hospitals

Lower interest rate