#2096: Free Trade and Agriculture : Lyall comments

[Robert Corbett <bcorbett@netcom.com>]

From: J. David Lyall <david@lyalls.net>

:->From: Mark Gill <markgill@midwest.net>

:->there must be a mix, where free trade is allowed in some areas,
while
:->other internal production, especially agriculture, remains
:->protected.....the "informal" economy is still the backbone of
:->Haiti.....damage it, and what will you have?  well, free trade never
:->protects the small producer, the small farmer....rather, it ignores
them
:->and they ALWAYS SUFFER....this has happened over and over.....

I am fairly sure that agriculture is not covered by the major trading
regimes. This has been a big item of dispute between Europe and
the US. 

It would be entirely legal and proper for Haiti to have zero tarriffs
on various manufactured goods and some protective tariffs on
items of domestic agricultural production. This will rapidly end
up being counter productive unless some national investment
in domestic production happens. Dominican banann are cheaper
than Haitan and as we all know, the border is very porous.
:->
:->here is where the govt of Haiti must enter the picture....to provide
:->subsidies that WILL protect the small producers who are the backbone
of
:->the "informal economy"....

I don't think that 'subsidies' are necessary. Investment in basic
infrastructure,
like transportation, are needed to increase productivity.

Before even that though, the legal system must protect people who
are willing to invest in agricultural production. Nowadays any
investment
is hostage to random dechoucaj.

The plain Cul de Sac was far more productive in 1800 than it is today.
----
J David Lyall
   or, Jedidiah Daudi in full ki-swahili
***** david AT lyalls.net *****
http://www.lyalls.net