Round Europe there is a Common External Tariff.
Therefore tariffs are OK to protect farmers, yes?
But, hang on, tariffs against EU farmers restrict free trade and therefore are against the greater good...aren't they?
So how can tariffs be good and bad?
The main advantage of tariffs is, as mentioned, the protection of internal trade. Lower prices of locally produced goods give farmers the opportunity to sell more and, consequently, raise the government's earning. This kind of protectionism causes many problems, for example having a less competetive market. It can also cause a problem of people buying domestic products even if their quality is much lower. This situation can obviously lead to the general decrease in quality of goods.
ReplyDelete