What Is The Level Of Agricultural Protectionism In The Developed World Essay

What Is The Level Of Agricultural Protectionism In The Developed World And Why Does It Occur - Essay Example Avoiding too much importing will protect the countries, especially developed, to lose the balance of trade as well as local businesses in their country. It protects its countries local industries to decline. According to Hussein Haeri, 'Agricultural protectionism' in the European Union takes many guises, such as "domestic support policies, import barriers, and export subsidies,3" to name a few measures. In fact, the European Common Agricultural Policy accounts for almost half of the European Union's budget. This results in significant distortions in both European and international agricultural markets. (Haeri, 2001) In the event of educating the poorer countries with regards to the benefits of 'free trade' the EU adopts and formulated policies, which restrain the trading of agricultural products freely or at a lower tariff. While the rich gets richer and the poor gets poorer, some rich countries are hiding in disguises. Agricultural protectionism occurs because when tariff levels are low, the productivity of the farms of the developed countries will be low. It is not difficult to see why price supports for dairy, sugar, peanuts, tobacco, and other U.S. farm products have led to protectionist policies. In recent years, for example, domestic prices of U.S. dairy products frequently have been two to three times world prices. The case of sugar, for which domestic price in mid-1986 was about four times world price, is even more dramatic. Without rigid import controls, consumers would undermine domestic price support programs by substituting lower priced imports for price-supported products including sugar, butter, cheese, and peanuts. (Pasour, n.d) 2.b) What form does it take and effect does it have. Agricultural protectionism comes in discreet forms. They over ride in domestic support policies, import barriers, and export subsidies. The effects of agricultural protectionism are: Farmers and other workers are not permitted to do their activities such as farming, etc. It is their field and because of agricultural protectionism, they are not allowed to do their job of which they are most productive. If farmers and other workers can't do their forte, they cannot gain enough income and benefits, thus they became poor. Billions of dollars of taxpayer subsidies are paid to U.S, European and Japanese farmers which depress world prices and make it tougher for our farmers to earn a decent return for their hard work," Mr Vaile said. (Vaile, 2005) The high global cost of goods deprives the poor ones to buy enough for their living. Commercialize agricultural goods that are not usually good for the health. Flooding of their (developing countries) domestic market (import surges) with products sold on the world market at less than their cost of production. (n.d) Displacement of local trading capacity which was intended to, and in some circumstances initially did, fill the void left following the deregulation of local markets and associated dismantling of parastatals. (n.d) Worsen the global poverty by imposing high import tariffs for small or developing countries, so instead of pulling up those developing countries, many of which have dived down to poverty due to these factors. Increased tradeproblems, tensions and job losses. For sugar, the deterioration of economic conditions which initially curtailed imports into major Asian markets has also led to a substantial drop in imports into the Russian. (FAO, n.d) Tight supplies in the vegetable oil market, particularly emanating from a drought-induced contraction in palm oil availability from major Asian producing countries, boosted prices, while oilmeal prices suffered from a decline in the demand for animal feeds in crisis-affected regions, accentuated by abundant supplies of