Economic Rationalisation and Globalisation were sold with the concept of removal of all tariffs in the economic environment of a level playing field. The rhetoric was the same as with climate change as were the actions. The whole world went to the International Conferences and pledged to drop tariffs and to open their borders for trading. Most did drop tariffs with some exceptions like Japan, but most behaved the same way they did for Kyoto and Paris, a lot of rhetoric but no movement towards the intended result.
There was never a level playing field as more and more non-tariff trade barriers were put in place. A few of those are listed below:
- Quotas. Sure, we could sell a product or commodity but only so much.
- Customs inspection. There was no tariff for shoes imported to some countries but they had to be inspected and there was a $20 inspection charge on a $50 shoe.
- Customs certification. In the 1980’s when Japan was at its peak, they were exporting video cassette players to France. There was no duty, but they had to be certified. There was only one person at one port that could do the certification. That was a minor port far away from the normal trade route.
- Change in paperwork. Often a country would change the paperwork and you would be required to hold a container on the docks. You would then be charged demurrage until the change was clarified.
- Quality claim. There are any number of reasons for a quality claim from a change of specifications through to new samples techniques or just plain fraudulent sampling. The outcome can be anything from turning the goods around to the incurring of demurrage while the issue is sorted out.
- Cancellation of orders. When a bespoke product is made it is normally only good for one customer. After you are have way through production they cancel the order or put it on hold.
These are still the things going on today. Last year it was coal in China, this year they have changed the iron ore inspection criteria.
For some reason Australians want to take the high moral road and in doing that they give away more than they know. Up until now that has worked because we have been able to rely on our vast natural resources, but now they seem to want to give them away to.
Related