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Wednesday, May 25, 2005

Cafta and Sugar Quotas

OpinionJournal :

The American sugar industry is so strongly advantaged by quotas, tariffs and subsidies that total sugar imports have declined by about a third since the 1990s. Cafta would allow additional sugar imports from the Central American nations totaling 107,000 metric tons in the first year. Annual U.S. sugar production is about 7.8 million metric tons, so the effect of Cafta is to raise sugar imports into America by about one day's sugar production, or as Mr. Portman puts it, 'approximately one teaspoon of sugar per week per adult American.' That threat--a teaspoon of sugar a week--has caused the U.S. sugar lobby to focus its efforts on killing Cafta. And it may succeed. The U.S. government agreed not to free up the sugar market in the 2004 trade pact with Australia. American sugar producers claim they are not against free trade. But only trade agreements approved by the World Trade Organization are acceptable to them; any trade agreements reached between America and other nations evidently are not. American sugar imports would depress sugar prices, they say. Well, American sugar prices today are about three times the world market's, so some price reduction would be good for Americans, just as lower gasoline prices would be.
I am a huge fan of free trade. I will concede to the applicability of using tarrifs and other protectionist measure against countries that 'cheat' in some other fashion, refussal to honor our intellectual property for example, but tarrifs purely as a protectionist measure are just plain wrong. They hurt our citizens far more than they help them and they can be crippling to developing nations. Trade is a deal where everyone wins, and protectionism makes everyone lose. Our sugar tariffs are amoung the most aggregious anti-trade policies we have. We should unilaterally do away with them, if we can get a regional free trade deal in the process, so much the better.

3 Comments:

Blogger The probligo said...

Heh Dave, sell the same idea to your beef farmers and make Australia, Argentina, South Africa, and many others happy; sell the same idea to your sheep farmers and make kiwi farmers happy; sell the same idea to your wheat farmers and you will solve much of the economic problems of places like Afghanistan at the stroke of a pen...

Trouble is, it would be a very long time before you ever got elected to any public office ever again. Not even as a Whichita loo cleaner...

5/25/2005 04:06:00 PM  
Blogger honestpartisan said...

Chicago has (or had) one of the largest candy manufacturing centers in the country. (I'm a native Chicagoan). The artifically high sugar prices that protectionism causes hurts Chicago's industrial jobs, then, as well.

Moreover, the high price of sugar combined with the federal government's perverse subsidies of the U.S. corn industry means that corn syrup is artificially much lower than sugar and is used as a sweetener a lot more than sugar is. And corn syrup is a lot worse for one's health than sugar and one of the main reasons for the increase in obesity in the U.S.

Don't get me wrong, I don't think that the government has much of a role enforcing fitness. On the other hand, I don't think the government should be actively manipulating markets to make more fattening stuff cheaper, either.

5/26/2005 07:21:00 AM  
Blogger Dave Justus said...

probligo: I agree with you. Sugar quotas are the most blatant perhaps, but all the ag tariffs and subsidies are flat out wrong in my opinion.

Honest Partisan: A very good examply of how these tariffs hurt U.S. workers.

It is unfortunate that something that is dispised by both sides of politics remains so entrenched.

5/26/2005 01:06:00 PM  

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