June 26, 2002

The greatest harm from President

The greatest harm from President Bush's steel tarriffs is the reaction from poor countries where protectionism stiffles economic growth. Jagdish Bhagwati writes:

If you hold on to your own protection, no matter how much smaller, and in fact even raise it as the United States did recently with steel tariffs and the farm bill, you are going to undermine seriously the efforts of those poor-country leaders who have turned to freer trade in recent decades. It is difficult for such countries to reduce protection if others, more prosperous and fiercer supporters of free trade, are breaking ranks.