I narrated this video in 2019, hoping that it would help people understand why free trade is good and protectionism is bad.
Sadly, American politicians don’t appreciate that message. Trump was a protectionist and Biden has followed the same approach.
To make matters worse, we may see even more protectionism in the future, not only in the United States, but also from the European Union.
But there is a country where lawmakers are moving in the right direction and lowering trade taxes.
It is, predictably, a very sensible nation.
Yes, I’m referring to Switzerland, arguably the world’s best-governed country.
As reported by Sonja Wind for Bloomberg, the Swiss are putting taxpayers and consumers first.
Switzerland is making a bold move in the era of trade protectionism that should make things a little cheaper: saying goodbye to industrial tariffs. Starting in January, 95% of all imports will enjoy duty-free status, promising more affordable goods like cars, household appliances and clothes. …it’s expected to boost competitiveness and moderate the elevated prices for everyday items. …The Swiss Federal Council touts an estimated welfare gain of 860 million francs ($981 million)… “It’s a good message to the world at a time when many countries are questioning the benefits of international trade and increase barriers to trade,” said Stefan Legge, head of tax and trade policy at University of St. Gallen, citing the US as an example. …From the producer’s standpoint, however, even a 1% reduction in the cost of goods sold would be welcomed, as would the reduced burden of complying with tariff schedules.
Since there will still be some taxes on agricultural imports, this isn’t quite unilateral free trade.
But it is pretty close to the very successful approach used by the United Kingdom in the 1840s and New Zealand in the 1990s.
And maybe someday in the United States (though not soon given the two leading candidates for the White House).
