Friday, August 3, 2012

Protectionism by another name

Protectionist pressures have already arisen and the role of WTO and patent rights are increasingly questioned. Pressures from local industry and groups are becoming stronger for safeguard against free flow of foreign goods and services. The major constraint for the growth of international trade in the developing countries is the trade policy in developed countries. Average tariffs in Canada, the European Union, Japan and the United States range from 4.3 per cent (Japan) to 8.3 per cent (Canada), but tariffs and trade barriers on primary products exported by developing countries remain much higher. Tariffs on major agricultural staples, for example, often exceed 100 per cent; tariffs are 15-30 per cent on textiles, clothing and footwear; and more than 30 per cent for many food industry products. These trade barriers have limited the opportunities for developing countries wanting to export greater quantities of their textiles and agricultural goods to the lucrative import markets
 Dr.C.Murukadas, The Hindu, Jul 28, 2012

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