Should the U.S. Restrict Free Trade?

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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 Their estimates suggest that world cotton prices would rise by 26 percent if the United States repealed cotton subsidies.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.