One tangible cost of American dairy protectionism: baby formula prices.
In New Zealand, 900 grams of Heinz Infant 1 Gold Starter Formula costs $23.60 at Countdown. In $US terms, that's $20.68/kg. I often saw it for around the $18 mark on special when we were in that market.
In the US, the best comparison I can find is a 35 oz can of Enfamil at Safeway: $33. That's about a kilo. And, it's about the cheapest dry formula I can see on the Safeway site on a per ounce basis.
I can think of few other goods where the real New Zealand price is two thirds of the US price. Maybe the US formula has some kind of magic to it where it can make larger quantities of reconstituted drink, but I'd be a bit surprised.
Does American policy really wish to transfer money from poor mothers buying formula to relatively wealthy members of the dairy compacts?
Meanwhile, in Canada, The Real Canadian Superstore will sell you 730 grams of store brand formula for $15: $25.70 NZ per kilo. But I'm not sure that a sale flyer price of a store brand is a fair comparison.
The global economy is beset by unfair trade practices—under the label of “Free Trade”—causing an increasing number of developed nations to
ReplyDeleteprotect their few remaining unionized workers against competition from
lower-paid, third-world labor forces that have fewer benefits and are not
hampered by safety and environmental regulations, at least not to the same
extent. Overpriced labor forces employers to look elsewhere where skills and
productivity are equal or better and transportation costs to markets are
feasible.
The fact is that if nations want free trade, no
treaties are necessary. Present “free trade” treaties are protectionist
documents outlining items to be excluded from free exchange; they are designed
to protect manufacturers, farmers, labor unions, and pharmaceutical
researchers, etc. Import inspections under the guise of sanitary safety
standards are frequently employed to circumvent free access to agricultural
markets that are the most highly subsidized and protected. Legal recourse
exists but is useless when perishable products are delayed. Higher fines must
be imposed when this practice is found to be abusive.
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