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Thursday

29

January 2009

A Last Minute Attack On Free Trade

Written by , Posted in Free Markets

The Washington Post reports on some regulatory parting shots the Bush administration took on free trade.

In its final days, the Bush administration imposed a 300 percent duty on Roquefort, in effect closing off the U.S. market. Americans, it declared, will no longer get to taste the creamy concoction that, in its authentic, most glorious form, comes with an odor of wet sheep and veins of blue mold that go perfectly with rye bread and coarse red wine.

The measure, announced Jan. 13 by U.S. Trade Representative Susan C. Schwab as she headed out the door, was designed as retaliation for a European Union ban on imports of U.S. beef containing hormones. Tit for tat, and all perfectly legal under World Trade Organization rules, U.S. officials explained.
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Besides, they said, Roquefort is only one of dozens of European luxury products that were attacked with high tariffs. The list includes, among other things, French truffles, Irish oatmeal, Italian sparkling water and “fatty livers of ducks and geese,” which apparently is how Washington trade bureaucrats say foie gras.

While none of these particular barriers are going to have significant economic impact in America, this is simply bad policy.

Playing tit for tat with trade barriers may have emotional appeal, but it makes little sense practically, as we’re hurting ourselves almost as much as them when we do it.  Moreover, we’re just encouraging others when they play these games.  There’s little chance these tarrifs will get Europe to rethink their beef policy, and cutting off our nose to spite our face does not constitute good policy.