Never trust a computer you can't throw out a window - Steve Wozniak
There’s a great op-ed in today’s Opinion Journal about free trade amongst the Americas, and they use our heavily subsidized sugar industry as an example.
The American sugar industry is so strongly advantaged by quotas, tariffs and subsidies that total sugar imports have declined by about a third since the 1990s. Cafta would allow additional sugar imports from the Central American nations totaling 107,000 metric tons in the first year. Annual U.S. sugar production is about 7.8 million metric tons, so the effect of Cafta is to raise sugar imports into America by about one day’s sugar production, or as Mr. Portman puts it, “approximately one teaspoon of sugar per week per adult American.”
That threat--a teaspoon of sugar a week--has caused the U.S. sugar lobby to focus its efforts on killing Cafta. And it may succeed. The U.S. government agreed not to free up the sugar market in the 2004 trade pact with Australia.
American sugar producers claim they are not against free trade. But only trade agreements approved by the World Trade Organization are acceptable to them; any trade agreements reached between America and other nations evidently are not.
American sugar imports would depress sugar prices, they say. Well, American sugar prices today are about three times the world market’s, so some price reduction would be good for Americans, just as lower gasoline prices would be.
U.S. Sugar Corp.’s Senior Vice President Robert Coker believes that “bilateral and regional trade agreements are death by a thousand cuts.” Such economic protectionism--no bilateral trade agreements allowed--is the good old-fashioned socialism that has failed millions of people for hundreds of years. Like Lenin, U.S. Sugar seems to think that Americans should suffer economically rather than have a free market in sugar.
So a spoonful of sugar may kill an opportunity for six Central American nations to strengthen their $33 billion annual bilateral trade with the United States, prevent an increase in America’s export trade of more than $2 billion a year, and mean thousands of American men and women won’t get jobs that otherwise would be available.
There’s one aspect to this that this article neglected to mention. The next time you buy a Coke look at the ingredients. You won’t see sugar, you’ll see “high fructose corn syrup.” This is sugar syrup made from corn, and it’s used in almost everything. Why? Because the high tariffs on imported sugar inflate the price to such a high level that using corn syrup is far less expensive. The main group lobbying for these high sugar tariffs is a corporation called Archer Daniels Midland. Why should ADM care about sugar tariffs? Because, you guessed it, ADM are the makers of, among other things, high fructose corn syrup. There’s absolutely no reason that Coca Cola couldn’t be made, as it used to be, with sugar, except for the artificially high price caused by government interference in free trade.
Posted by
Lee on 05/25/05 at 01:19 PM (
Discuss this in the forums)
Comments
Commenting is not available in this weblog entry.
<< Back to main
And sugar is a hell of a lot better for you than corn syrup. Tastes better as well.