Some countries and their governments find it necessary to implement economic policies that would prevent from stacking import of low-cost agricultural products on shelves of supermarkets or
stores. They often put in place an extra tax on imported
to make its price higher. The question is why do the governments try to enforce taxes on imported
benefit and protect
Certainly, the higher tax on imported
products by the governments benefit
. It provides a steady source of revenue that can pay
their subsidies. Obviously, producing
isn’t cheap and requires a lot of manual and mechanical labour in order to grow and harvest it.
, many large fruit producers in Florida rely on manual workers to pick up oranges in the peak season, so any labour cost or equipment used needs to be calculated into the price of
, these expenses make locally grown
sometimes more expensive.
coast is often absorbed by the government that pay
the subsidies to sell agricultural products at a lower price than their cost of production.
, the taxation of imported
can provide needed revenue to provide financial assistance to
Most importantly, the
of taxation is necessary to protect
from losing their livelihoods. The
prevents the competition from entering the market, so there is no external force to push
to lower their prices below the cost of their production.
in Latin America firsthand had experienced in the early 90s the consequences of the free trade agreement known as NAFTA.
agreement had permitted the influx of cheap
imports to their countries.
from South America lost their farms and were pushed into poverty because they couldn’t keep up and compete with extremely low prices of imported goods.
I truly believe
is necessary. Simply, the high tax on imports helps to protect
from living in poverty and the government can generate enough revenue to provide them with financial assistance to make their hard work profitable.
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