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Wednesday, 24 March 2010

Import tarriffs EU not always damaging for poor counties

The high UE import tarriffs are again under fire from the advocats of Free Trade. Research done by the University of Wageningen, Holland shows that these tarriffs are not neccessarily harmfull to developing countries. Inparticular big developing countries can level with the EU-Bastion. The agricultural commercial policy of the EU comes under regular criticism from advocats of Fair Trade. To protect its own industry the EU has raised tarriffs on agricultural products. This is unfavourable for the development of developing countries. Research carried out at the Agricultural Economic Institute (LEI) at Wageningen University shows that high tarriffs for processed products does not always have to be an obsticle for exports from developing countries. Commisioned by the Dutch ministry of agriculture, the LEI took ten important agricultural products from developing countries in to consideration. It showed that the rise in tarriffs does affect the import of cocao, tomatoes, palm oil, soya, leather and cotton, but not the import of sugar, poultry, beef and timber. In some other cases it showed that in the group of most imported products the tarriffs were highest. Despite the tarriffs soya and cotton still reached the European market.

Souce: Freshplaza

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