13.7.03

SPRAWL IS GOOD FOR THE THIRD WORLD. Andrew Sullivan commends Victor Keegan's proposal to abolish agricultural subsidies by the developed countries. If anything, Keegan is understating the costs. Many candy factories have been moving their production lines from the Chicago area, which used to be Candy Maker for the World (to go with Hog Butcher for the World, now in Nebraska, and Player with Railroads, where these are the Good Old Days) to Canada, in order to benefit from U.S. sugar subsidies, which mandate tariffs on imported sugar and subsidize exports, so it's cheaper to buy U.S. sugar at subsidized prices in Canada and convert it into candy there, which, as a "manufactured good," qualifies under the North American Free Trade Agreement to cross without tariff.

In other trade news, I understand that the World Trade Organization has raised an objection to the U.S. steel tariffs, which hurt the same sugar farmers the sugar subsidies are supposed to protect. Got that?

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