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The EU sets fairly high tariffs on food imports, since food security means we must maintain local food production. Australia does not use this approach, and in
by Symbiote 6y ago
The EU sets fairly high tariffs on food imports, since food security means we must maintain local food production.
Australia does not use this approach, and instead seems to have pushed other countries to eliminate their own tariffs for the TPP.
- smnrchrds 6y agoWhat tariff does is that it moves the price point at which the retailers switch to imports a bit higher. Tariff does not eliminate the ceiling. There still would be a ceiling on price, determined by international commodity price + X% tariff.
- freeone3000 6y agoSo the tariff needs to be high enough to be absolutely ruinous. See, for example, Canada's tariff on dairy. Since Canada runs a cartel on dairy producers, Canada does set the domestic price of milk at $4/gal. This is incompatible with the US subsidy model, where it prices out to around $1.50 a gallon -- so there's a 270% tariff on dairy imports. The great thing about numbers is there's always a bigger one.
- smnrchrds 6y agoYes, you can do that. It's not something the farmers strapped for workers can do, but the government certainly can. It would not be particularly popular in most political climates, so passing such laws in democracies are always difficult. But as the Canada example shows, not impossible.