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'Trade wars are good, and easy to win,' Trump tweets
RE: 'Trade wars are good, and easy to win,' Trump tweets
(09-23-2018, 04:04 AM)Rajvik Wrote: Part of me wants to be snide about this, but since I have been asked to tone down the rhetoric I will simply ask the question. How difficult is the concept of Zero percent tarries on all goods both ways.

I understand that your government wants to protect your dairy farmers, there are industries here in the states that Canada does cheaper than we do that we want to protect as well,

The US subsidises its farmers to a massive degree, artificially lowering the prices of its products compared to native producers.  The US has, in previous, used these artificially low prices to decimate local industries - the example coming to mind is Jamaican milk producers getting stamped out of existance by powdered milk from Wisconsin.

Absolute Free Trade doesn't work - just like a free market it becomes very easy for larger markets to utterly dominate. While it bodes the best for absolute efficiency, efficiency is not always the best and most stable economic policy. Truly free markets always tend towards monopoly, which ultimately tends towards innefficiency.

Tarriffs are normally agreed between nations, to be mutually beneficial to each other. Nobody wants their exports to be tarrified, but at the same time nobody wants to spend too much on imports. Nobody wants their native industries obliterated by foreign, but at the same time, fully closed markets tend to stagnate and come apart. So compromises are struck that work to everyone's benefit. Or at least, that hurt everyone the least.

It should be obvious why these agreements can take the best parts of a decade to hash out.

The EU is an odd state. Inside the EU is a free market in that there are no tarriffs. But it's a free market governed by very specific rules. There's specific country of origin protections  - Parma Ham or Bordeaux wine of Scotch Whiskey can only come from very specific geographical areas, and must be manufactured using specific processes. That's a legal statute. Hardware must be manufactured to specific directives, and must be either marked as being compliant, or marked with the directive it complies under. I've had to specifically deal with this multiple times - explaining the cases where a CE mark on a product is not required, because it is compliant under a different directive, and this is how. The EU also subsidises locations that would otherwise be geographically untenable by their location, simply because it's better for a factory in Germany if a farmer in Donegal is able to afford its products, than the alternative, where nobody can buy anything. It works in reverse - because Ireland produces higher quality beef and milk that most parts of the world, which it's then able to sell to the EUU under a protected label.
Oh sweet meteor of death
Fall upon us.
Deliver us in fire
To Peace everlasting.
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RE: 'Trade wars are good, and easy to win,' Trump tweets - by Dartz - 09-23-2018, 07:52 AM

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