WTO - can anyone tell me...

[SenoraPostrophe]

...why "going back" to the days of tarrifs etc on imports is such a terrible thing?

I was watching a report on it today, and much as i don't particularly support the French farmers in their passionate defence of the subsidies they get, it occured to me that the WTO alternative - no subsidies and completely free trade everywhere - is potentially even more horrendous, particularly in terms of stability for any industry in any country.

So why shouldn't governments put tarrifs on imports and even set prices to protect some industries? Some industries, like farming, should be protected to an extent (though they shouldn't be protected because they grow mile upon mile of oilseed rape or whatever the in crop is this year). African countries would surely benefit from being able to set tarrifs more than they would by being able to export to Europe surely? plus food miles would be saved and there´s be all sorts of other benefits that i think I'll save for another post in case of lack of interest in this thread.

anyone?
[NB please don't say "goods would be more expensive". Many goods, including food are really too cheap at the mo. If we have to spend some of the tax savings that come from cutting subsidies on increases in pensions and benefits then so be it]

Underdeveloped countries only have three types of exports: raw materials, unskilled or semi-skilled labour, and agricultural produce.

The capital for development of raw materials is not without interest, and the lenders set terms which recycle the loan back to the lender countries in consultant fees and contracts.

The raw materials that underdeveloped countries export, is obtained dirt cheap by the corporations that operate the concessions or franchises.

Manpower export has slowed down considerably, because unskilled labour is no longer needed.

Employment in Agriculture of the underdeveloped countries has also declined, because in real terms communications and transport costs have gone up after deregulation and denationalisation forced by the money lenders.

In real terms, the only cost that has gone down is the cost of unskilled labour in the villages. And so agriculture is also being abandoned.

The result: hunger is forcing these people to abndon their localities and move: to cities where there is not always a boom, or to risk drowning or suffocating or exploitation through illegal immigration.

If you make every export difficult for the poor countries, and make capital expensive, what sort of stability will you have?

But my point is that a truly free market doesn't provide stability because the exports only happen until some other country manages to produce similar raw materials more cheaply.

I think the best solution would be to forget about free trade (hey - if the raw materials are available closer to home it makes better global sense to get them from there) and instead put more money into cheap loans and aid for developing countries.

the whole thing gets right up my nose as you can possibly tell.

Interesting about the CAP - the whole view we get of it is that it's a way of subsidising bloated environmentally-unfriendly French farmers. A friend of mine was haranguing me the other day along the lines of we need a CAP (not necessarily the one we've got now) in order to ensure that enormous American multi-national agricultural companies don't take over European food supply via enormous African farms (which they will buy up). "It's about keeping farming in Europe!" he cried with a slightly crazed look in his eye. And actually, I think he's got a point.

I do think there is a point to some sort of help for farmers, yes. but I think we should be more honest about it and just fix the prices and/or block imports. subsidies in the uk just go straight into the pockets of the supermarkets - they know the farmers will be getting x amount from govt anyway so can push their prices lower.

otoh the envirnment should be taken into account - the new subsidies for doing environmentally friendly things like replanting hedgerows are a good idea.