Free trade with poor countries

[Arnfinn Madsen]

Since some of poor countries poverty is blamed on trade barriers from rich countries our government (Norway), in solidarity with the poorest countries in the world, made a lot of import from these countries toll-free.

It is basically a failure, the import volume from these countries is still insignificant. Anyone provide insight?

[sam h]

[ QUOTE ]
It is basically a failure, the import volume from these countries is still insignificant. Anyone provide insight?

[/ QUOTE ]

It sounds like more of a symbolic gesture than anything else. The Norwegian market for the primary and agricultural products of developing countries can't be that big. It is the reluctance of the US, Western Europe, and Japan to liberalize their markets which is screwing developing countries, not the Norways of the world.

[Arnfinn Madsen]

Symbolic, of course; but our total import is $40,000,000,000 pr year and that is higher than the total GDP of most countries and way higher than these countries GDP so if successful it could still have substantial impact. The important part though is if it puts into doubt whether it it would make sense to do the same in other countries?

[fluff]

You missing 3 zeros.

[Arnfinn Madsen]

Yes, corrected now.

[sam h]

[ QUOTE ]
The important part though is if it puts into doubt whether it it would make sense to do the same in other countries?

[/ QUOTE ]

I don't think this is the case. Agricultural interests in the larger countries are fighting like hell to keep their proetected status for a reason. The products of developing countries pose a serious threat.

[natedogg]

[ QUOTE ]
Since some of poor countries poverty is blamed on trade barriers from rich countries our government (Norway), in solidarity with the poorest countries in the world, made a lot of import from these countries toll-free.

It is basically a failure, the import volume from these countries is still insignificant. Anyone provide insight?

[/ QUOTE ]

Free trade on Norway's part is beneficial to *Norway*, regardless of what happens in Africa. This concept applies to all nations. Even if the whole world slapped huge tarriffs and quotas and burdensome regulations on *themselves* to do trade with you, it would still benefit you to ignore it and trade with all comers.

Even the shrill partisan liberal economist Paul Krugman agrees with that much.

natedogg

[Arnfinn Madsen]

i think all members of senate and congress agrees with your statement. Cheap imports benefits the importers since the freed resorces will find alternative use at their present value elsewhere which can be used to pay for cheap imports at current level but with a surplus.

This is something that politicians find very difficult to communicate to the public.

[natedogg]

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i think all members of senate and congress agrees with your statement.

[/ QUOTE ]

Not in my country. Maybe in yours....

Our senate and congress are composed of idiots and buffoons for the most part. They have recently been agitating for clampdowns on trade with *CHINA*, which is absolutely insane. In fact, the Bush admin just implemented quotas on t-shirt imports from China for some reason. No one can figure out why, even the liberals, since the all-powerful t-shirt manufacturing lobby disappeared from this country long ago.

natedogg

[Arnfinn Madsen]

I know they vote this way, democrats and republicans alike. But do you think they really mean it?

[natedogg]

[ QUOTE ]
I know they vote this way, democrats and republicans alike. But do you think they really mean it?

[/ QUOTE ]

You mean, do I think they're just pandering for votes from the stupid hoi polloi? Yes, I think that.

But I also think that many of them are too stupid to understand even simple concepts, much less the real advantages of free trade.

Our lawmakers are good at looking serious in front of a podium and at smiling for cameras, but not much else.

I really don't believe that any of them understand much. Even the Republicans who make a lot of noise about low taxes and free trade don't really understand WHY that is good, they just know that their base supports it.

And of course, there's no explaining the Democrats on anything they do. God only knows what's going on in their little brains.

natedogg

[Arnfinn Madsen]

The same misconceptions apply when they pressure China to revalute its currency, making imported goods more expensive, thus reducing purchasing power of American citizens.

[jcx]

[ QUOTE ]
Since some of poor countries poverty is blamed on trade barriers from rich countries our government (Norway), in solidarity with the poorest countries in the world, made a lot of import from these countries toll-free.

It is basically a failure, the import volume from these countries is still insignificant. Anyone provide insight?

[/ QUOTE ]

Sure. The reason the figure is so insignificant is there is nothing these countries produce (save some natural resources and agricultural products) that the industrialized world wants. What manufactured good does Liberia produce that I could buy, even if I wanted to? How about Haiti? Somalia? (Note: I am not talking about developing countries like Mexico, an obscenely rich nation compared to the poorest of the poor).

These nations deparately need foreign investment in infrastructure, factories, etc but are unable to attract any. While they offer large amounts of extremely cheap labor, this alone is not enough. No one is going to invest any money in a country where their property rights and contracts will not be respected. With few expections, the poorest countries are either ruled by complete despots or exist in a state of near anarchy. Even the snowiest of doves are smart enough not to sink large sums into a country that will probably be the scene of a coup d'etat before the factory foundation is poured.