Trade Barriers Harm Poor, Not to Mention United States

One way countries restrict trade is through tariffs, which
ultimately hurt the world’s poorest people. For example, because tariffs on
imports of some African agricultural products are as high as 150 percent,
African farmers are often unable to compete in the American market, even if
their production costs are lower. Protectionist policies are especially
devastating to Sub-Saharan Africa because farming accounts for nearly 70
percent of total employment and is the main source of income for the majority
of Africans living in poverty.

Reducing U.S. trade barriers and farm subsidies would spur
growth in Africa. Since the 1990s, world cotton prices have fallen by half,
much of which is due to U.S. farm subsidies, according to the International
Cotton Advisory Committee. Their estimates suggest that world cotton prices
would rise by 26 percent if the United States repealed cotton subsidies. This
amounts to an increase of over $300 million per year in income for African
cotton farmers.

U.S. agricultural subsidies not only undermine African
development, they do not benefit the United States . Farm subsidies cost
taxpayers up to $35 billion annually. Additionally, tariffs hurt U.S. consumers
by raising food prices. For example, due to tariffs, Americans pay about twice
as much for sugar as people in other countries, costing American consumers
about $1.9 billion annually, according to the Government Accountability Office.