Monday, 14 January 2013

Another victory for protectionism

Another story from BBC News:

Sweden has issued international arrest warrants for two Britons suspected of illegally importing 10m euros (£8m) worth of garlic into the EU via Norway. Why would criminals do that?

Why indeed?

The answer:

  • EU imposes 9.6% customs duty on foreign garlic
  • China produces about 80% of the world's garlic, cheaply
  • Criminals can make millions of euros smuggling it

[The customs duty] was meant to prevent garlic growers in EU member states from being driven out of business by Chinese farmers, who have captured large swathes of the global market by producing crops at knock down prices.
Garlic in the EU is mainly produced in Spain, but also in Italy, France, Poland, Hungary, Romania and Bulgaria.

If you're a continental garlic farmer, the EU is brilliant. For the rest of us, not so much - we're forced to pay more for our garlic. The same applies for countless other goods. The CAP represents the triumph of producers over consumers.

I wish the Eurocrats would read some Bastiat. But since they won't, we really need to Get Britain Out - the sooner, the better.

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