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August 10, 2005
It's getting chilly
The absurdity of protectionist trade policies and fear of Chinese textile imports rears its ugly head. The EU and China are to "re-open" (read fudge) talks on sweater quotas for 2005 because retailers have literally wharehouses full of them. And this is just the start. As Big Yuan says:
This is another example of government trying to manage the conflicting interests of different constituencies. The quotas were placed in part to protect the French and Italian textiles industries, but the strength of the retail industry is beginning to change official EU policy.Lest you think it's those crazy Europeans, the Americans are talking about textile issues too, trapped between domestic retailers and domestic producers.
Politicians think protectionism plays well with the voters with all that blater of saving jobs and keeping "vital" industries going. Far more people work in retail, and all voters are consumers. A lack of cheap sweaters come winter thanks to random quotas won't impress Mr and Mrs Shopper.posted by Simon on 08.10.05 at 10:52 AM in the
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Protectionism: Blue Collar and White
Excerpt: I just had a small “holy duh” moment that I thought I’d share, when Simon pointed out a phenomenon that I’d been dimly aware of but never really considered the implications of: Politicians think protectionism plays well with ...
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Tracked: August 10, 2005 02:18 PM
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Excerpt: The scenario being played out in regards to the Chinese textiles not being allowed for EU import is fascinating not for the goods themselves, sweaters and pants, but for the lengths to which government will go to "protect" jobs, distort trade, and sh...
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Tracked: August 11, 2005 08:08 PM