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Trade Restrictions Show Hypocrisy
by
Sheldon Richman,
September 12, 2003
A lesson in government hypocrisy as if one were
needed these days is to be found in the
agricultural policies of the rich nations of the world,
including the United States.
The U.S. government incessantly proclaims its desire to
help the worlds poor. Empty words. Sure, the
politicians force the suffering American taxpayers to
provide foreign aid to the developing countries
governments. But whats good for a government is
usually not good for those who live under it. Meanwhile,
the people of those nations are held down by a
constellation of U.S. (and European) tariffs and quotas
that stifle their ability to improve their own
conditions.
Once again government thwarts social cooperation, which
is the essence of the division of labor and economic
exchange. American consumers would love to buy low-priced
clothing, shoes, and agricultural products from abroad.
Producers in the developing world would love to sell them
those things. But these exchanges never come to fruition.
Why? Because the U.S. government forbids it. And why does
it do that? Because domestic producers and farmers have
the political pull. Thus, tariffs raise the price of
low-cost foreign products so that they are less attractive to
Americans than domestic alternatives. And import quotas
suppress supply, forcing Americans to pay more for fewer
goods.
This is a double abomination. It makes a mockery of all
those pledges to help lift the worlds poor out of
poverty. U.S. policy consists of throwing a few crumbs
(forced from the taxpayers) while stifling self-help
through economic enterprise. Moreover, it exposes the
hypocrisy of all those politicians who say they want to
end poverty at home. If they really wanted to do that,
they would work to sweep away the laws that artificially
raise the price of clothing and food. If people in
America had access to foreign-made products at
free-market prices, theyd find it much easier to
care for their children. So why dont we hear our
misleaders calling for free trade for the
children? The answer is simple: they dont want to
lose the votes of certain businessmen, unions, or
farmers.
Because protectionism is rampant in the West, we should
applaud China, India, Brazil, and the rest of the
Group of 21 for demanding that the
industrialized world drop its trade restrictions on
agricultural products and eliminate farm subsidies. The
subsidies encourage Western farmers to overproduce and to
dump their surpluses in the developing world, throttling
local producers. The Group of 21 threatened to oppose new
trade agreements during the recent meeting of the World
Trade Organization in Cancun, Mexico, unless their
demands were met.
As the Los Angeles Times put it, The
announcement amounts to a bold challenge to the hegemony
of the United States and European Union in setting the
worlds trade rules and agenda. But observers
are expecting the United States and European Union to put
the screws to the developing nations in order to keep
them from upsetting the meeting. One way to do that would
be to threaten even higher tariffs and lower quotas.
If this doesnt show the malevolence of the Western
governments, what would? The farmers in the developing
world simply want to sell their products to willing
buyers. But because of the political connections of
wealthy farmers in the United States and Europe, they are
forbidden to do so.
The Washington Post offers a poignant
example from Brazil. Because of the pull of the American
sugar growers, the U.S. government imposes quotas on
sugar from Latin America, with a 244 percent tariff on
any excess. Brazil could produce twice as much sugar if
Americans were free to buy it. Because of the
protectionist wall, poor Brazilians who would be working
in the sugar industry today cant find jobs. And
Americans have to pay far more than the world price for
sugar. This is indecent.
Globalization is under attack from a motley crew of
socialists and phony anarchists (who want governments to
stifle trade). A defense of true globalization
unfettered free trade cannot be made by
hypocritical protectionist governments beholden to
special interests. Free traders of the world unite. We
have nothing to lose but our chains.
Sheldon Richman is senior fellow at The Future of Freedom Foundation, author of Tethered Citizens: Time to Repeal the Welfare State, and editor of Ideas on Liberty magazine. Send him email.
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