“The EU also maintains 142 tariff-rate quotas (TRQs) for agricultural products - a major frustration for Australia’s exporters. Dairy faces the highest average tariff, at 32.3%. Sugar and meat are not far behind, at 27% and 19% respectively.”
Let’s say, I want to further animal wellbeing and pass a law, that every pig has to have X amount of space. Now, all my farmers are at a global market disadvantage. Consequently, they will close shop, I will import pork from other unregulated countries.
The pigs are still cramped somewhere else, I have destroyed my farming sector and my food security.
That’s why I can support some tariffs for essentials industries
Strategic tariffs can be useful for lots of reasons. Protecting a culturally important industry, supporting certain values in that industry that aren’t respected in other countries, maintaining an industry that is important to national security (e.g., domestic steel production) that would be difficult to ramp up in an emergency if the domestic industry collapses in the face of foreign competition.
The inherent tradeoff is that there will be retaliation by the tariff recipient on some other industry in your country; you basically accept a detriment for one domestic industry to gain a benefit for another.
But blanket tariffs are just stupid. There are lots of industries for which it will never be cheaper to produce locally than in low-wage countries in East or Southeast Asia and that are the kinds of jobs most industrialized nation workers just aren’t interested in doing. Companies will simply pass that tariff onto consumers instead of investing massive capital and spending much more on labor to relocate domestically.
People will buy less of everything because it’s suddenly way more expensive. Companies will sell less and have to lay people off. Blanket tariffs are effectively a regressive tax increase that directly impacts economic growth.
That’s one point, but it’s also a competitive measure. Australia has conditions that make them more competitive in things like dairy farming, wide empty and cheap land for example, that can sustain way bigger herds than most European farms, which allows them to sell the produce cheaper and still have a margin. Without some sort of regulatory measures this would ruin smaller dairy farmers in europe, because they have little to no way to compete with those prices.
Also those tariffs are a bargaining chip in the EU-AUS free trade negotiations at the moment.
Tariffs can be a very good tool to regulate prices or protect certain sectors that can’t compete the same way as outside powers in a global economy. BUT there has to be a fine strategy to it, otherwise you’re just kicking of trade wars.
That’s one point, but it’s also a competitive measure. Australia has conditions that make them more competitive in things like dairy farming, wide empty and cheap land for example, that can sustain way bigger herds than most European farms, which allows them to sell the produce cheaper and still have a margin. Without some sort of regulatory measures this would ruin smaller dairy farmers in europe, because they have little to no way to compete with those prices.
How does that not apply in the same way that US is seeking here against China with manufacturing?
Why is it OK for Europe to protect their jobs but NOT OK for US to protect their jobs? What makes Europe so special?
How does that not apply in the same way that US is seeking here against China with manufacturing?
Why is it OK for Europe to protect their jobs but NOT OK for US to protect their jobs? What makes Europe so special?
I am not informed enough to speak on that, I didn’t imply anything in my comment that would suggest I think that one way or the other.
The only thing I can say about that is, that with those tariffs the US is violating free trade agreements that were negotiated by the Trump administration themselves during his last presidency specifically with Canada and Mexico.
Either cooperatives on a relation of trust and mutual ethics. Or don’t work together at all.
The 1% doesn’t care about nations, that fact that it will just cost a little extra to fund their projects in some areas is just a game of monopoly to them.
Why does the EU have massive tariffs then?
“The EU also maintains 142 tariff-rate quotas (TRQs) for agricultural products - a major frustration for Australia’s exporters. Dairy faces the highest average tariff, at 32.3%. Sugar and meat are not far behind, at 27% and 19% respectively.”
https://nff.org.au/wp-content/uploads/2021/03/NFF_Factsheet_Australia-EU-FTA_2021A-1.pdf
A hypothetical:
Let’s say, I want to further animal wellbeing and pass a law, that every pig has to have X amount of space. Now, all my farmers are at a global market disadvantage. Consequently, they will close shop, I will import pork from other unregulated countries. The pigs are still cramped somewhere else, I have destroyed my farming sector and my food security.
That’s why I can support some tariffs for essentials industries
Strategic tariffs can be useful for lots of reasons. Protecting a culturally important industry, supporting certain values in that industry that aren’t respected in other countries, maintaining an industry that is important to national security (e.g., domestic steel production) that would be difficult to ramp up in an emergency if the domestic industry collapses in the face of foreign competition.
The inherent tradeoff is that there will be retaliation by the tariff recipient on some other industry in your country; you basically accept a detriment for one domestic industry to gain a benefit for another.
But blanket tariffs are just stupid. There are lots of industries for which it will never be cheaper to produce locally than in low-wage countries in East or Southeast Asia and that are the kinds of jobs most industrialized nation workers just aren’t interested in doing. Companies will simply pass that tariff onto consumers instead of investing massive capital and spending much more on labor to relocate domestically.
People will buy less of everything because it’s suddenly way more expensive. Companies will sell less and have to lay people off. Blanket tariffs are effectively a regressive tax increase that directly impacts economic growth.
deleted by creator
That’s one point, but it’s also a competitive measure. Australia has conditions that make them more competitive in things like dairy farming, wide empty and cheap land for example, that can sustain way bigger herds than most European farms, which allows them to sell the produce cheaper and still have a margin. Without some sort of regulatory measures this would ruin smaller dairy farmers in europe, because they have little to no way to compete with those prices.
Also those tariffs are a bargaining chip in the EU-AUS free trade negotiations at the moment.
Tariffs can be a very good tool to regulate prices or protect certain sectors that can’t compete the same way as outside powers in a global economy. BUT there has to be a fine strategy to it, otherwise you’re just kicking of trade wars.
How does that not apply in the same way that US is seeking here against China with manufacturing?
Why is it OK for Europe to protect their jobs but NOT OK for US to protect their jobs? What makes Europe so special?
I am not informed enough to speak on that, I didn’t imply anything in my comment that would suggest I think that one way or the other.
The only thing I can say about that is, that with those tariffs the US is violating free trade agreements that were negotiated by the Trump administration themselves during his last presidency specifically with Canada and Mexico.
Why any tariffs indeed.
Either cooperatives on a relation of trust and mutual ethics. Or don’t work together at all.
The 1% doesn’t care about nations, that fact that it will just cost a little extra to fund their projects in some areas is just a game of monopoly to them.