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America and the EU practice many forms of protectionism. Isn’t this a double standard, where the rich keep their barriers and the poor are made to open their economies up for exploitation?

Most rich countries actually have very low tariffs by global standards. Nevertheless, they could go further. Ideally, they would eliminate all tariffs and subsidies. Doing so would benefit not only the people living in those countries but also those who seek to export to rich countries.

 

The idea that poor countries would be ‘exploited’ if they reduced their trade barriers is silly. Actually, the opposite is more plausibly the case: trade barriers keep countries poor and ensure that labour is inexpensive, enabling ‘exploitation’ of these low cost workers by firms in rich countries. If poor countries really wanted to avoid ‘exploitation’, they should ban exports to rich countries.

 

Of course that would impoverish them further – demonstrating that the whole concept of ‘exploitation’ is of dubious merit. In Kenya, removal of some of the barriers to provision of telecommunications has resulted in massive improvements in communications, as private cell phone companies compete with the state monopoly provider of landlines. The economic and social benefits have been enormous, with improvements in business conditions, . By contrast, in Ethiopia, only the state telecommunications company has meant that just 1.2% of the population has access to mobile or fixed line phones, mainly in the cities.

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