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No. Generally no tarrifs benefit both. Comparative advantage and all that.
by UK-AL 10y ago
No. Generally no tarrifs benefit both. Comparative advantage and all that.
- bayesian_horse 10y ago"Generally" strongly assumes equal or even perfect competition. For example say Country A and B trade coal and agree to no tariffs. Country A now cuts back on worker protection and wages, such that their coal is cheaper. Country B's only other chance than doing the same would be to raise a tariff to keep its own coal competitive. That's why Country B wants a say in Country A's labor laws.
- barrkel 10y agoAnd this is exactly the reason for a supra-national body that comes in with annoying regulations and red tape that stops you from competing with Johnny Foreigner in the full-blooded way you want to. Let the race to the bottom commence!