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Yesterday I was watching a program on BBC - don’t recall the name of program, but listeners or viewers from all over the world would call or write during the debate on the subject: Tariffs and trading barriers, how it impacts you! Along with the host a former EU commissioner Peter Sutherland where participating in the debate.

It was interesting to hear the different points of views being presented in the program.

The British farmer argued that he would be out of business with no subsidies - but agreed that it was an inefficient solution in the long run. He didn’t mind giving up his subsidies all together - if everyone else also did… Leveled playing fields in other words…

A caller from Finland representing Finland’s sugar production argued that subsidies was necessary to keep a otherwise dying, but vital, industry alive. His base argument was independence and the ability to self-supply in hard times (e.g. World War III or regional conflicts isolating a country).

The African farmer felt pounded by unfair balance in subsidies, which leads to EU dumping of goods in Africa.

The British garment shop owner complained of being put out of business, the American businessman argued that some people just have to realize that their industry is inefficient in Western settings and those people better find something else to do. Peter Sutherland argued that Western countries for sure could be more efficient and compete with China or India. He pointed at Ireland as a good example.

All in all a very interesting debate, but the most silly argument I have ever heard in such a debate came from the American Steelworks Union Representative who argued that tariffs was a good thing as it protected the developing countries. He emphasized that only by tariffs and trade barriers (in other words keeping Western industries from expanding into developing countries) can one prevent exploitation of workers in e.g. China or India.

What a lame argument; keeping poor people from future development, keep them in their misery, and stall their countries development – all because you want to protect them???

I mean, just pay a visit to any worker museum in Europe and find that evolution and prosperity does not come over night. For many years in the early days of industrialization Danish workers lived in unbelievable poor conditions with no rights and benefits what so ever. Eventually, as more businesses grew, worker rights and securities evolved but again this process took many years.
Even tough, we in the Western world have completed this transition from early industrialization to modern days business life, the analogue development in the developing countries are going to take some time. Of course the Western companies have Social Responsibility and all – and they should practice it – but there is more to it than that. The development has to come from within these countries both in terms of political and social reforms but also in the improved infrastructure. An improvement that can only come from one place: FDI’s of Western companies…

I say, skip tariffs, open trade, let everyone have access to the opportunities of tomorrow – in the long run it is going to benefit us all…

What do you think?