by Rick Lowe
Competitive and market access issues were on the
table at a recent meeting with members of the agricultural sector, Mr.
Godfrey Eneas, Mr. Ryan Pinder, Mr. Hank Ferguson and other government
representatives.
According to a Bahama Journal report by Business Editor, K. Quincy Parker, "The
Bahamas' price control regime appears to be counterproductive,
according to some members of the agribusiness sector: rather than
protecting Bahamian businesses, the current regime has in some cases
forced Bahamian companies out of certain markets."
This is nothing new of course. It impacts retail stores the same way.
But then the report goes on to say that agribusinesses are "suffering
from instability in the market, with price fluctuations, the absence of
protective tariffs and a general feeling that no political
administration has been serious about boosting the local manufacturing
sector."
And so the politocos at the meeting promised regulatory regime initiatives and "stronger protections for Bahamian agribusinesses."
That
would be a mistake but, to their credit, the government officials there
informed the local participants about meeting international standards,
phytosanitary measures, labelling and more.
The danger in all this
is not emphasising the fact that more is required of many local
products to make themselves competitive. Oh sure, it's mentioned in
diplomatic language, but that's interpreted as protection from imports
for the local farmers, just because they're Bahamian.
In other
words, we can't expect our products to be accepted if they do not meet
international standards. And in many cases that's a tall order.
Oh
sure, tax dollars might be thrown at the problem like so much else, but
in the year 2012 shouldn't the taxpayer demand some accountability?
So what about price control you ask? Well there's 4,000 years of evidence that they don't work and neither does other forms of protectionism.
It's curious that after all these years there are people that believe that politicians, or anyone for that matter, are skilled enough to prevent market instability and price fluctuations. More often than not they create the market fluctuations with the policies like those being recommended.
Hi Rick,
I see that yet again the ‘fair versus free trade’ arguments surface again? On balance, fledgling industries should be protected, so it matters not whether ‘…. our products (will) be accepted if they do not meet international standards’ because they are being sold locally, yes?
Is this the flip side to the rejection of West African fruits and vegetables (like tomatoes) by the European Union, simply because their size and shape are not consistent or may not be aesthethically pleasing to the consumer’s eye?
Thanks S3S,
So no matter what the consumer wants the government knows what’s best?
Well Rick, to be honest, in several years of reading International Business, I have yet to come across any evidence where consumer wants trump State decisions …
For example, here in the UK, most consumers (including myself) would prefer to have American products at American prices (and when we want them), but the Government would never allow that (nor the untaxed importation of American products).
Or French wines, cheeses and cigarettes in unlimited quantities?
Similarly, do you think the US Government is happy about Americans venturing north of the border to acquire cheaper pharmaceuticals (or bringing back Cuban cigars from Mexico or The Bahamas)?
The list can go on and on ….
Thanks S3S,
Just two words. Black Markets.
Let me explain.
No the US government is not happy with people “venturing north or going to Cuba” etc so they can protect their cronies, or pick the industry they “think” should get the concessions, or to uphold some dumb embargo etc.
However, that is some of the reasons black markets develop.
So people get the product they really want or do without if government attempts to force their will.
And we have agreed to lowering our import tariffs because they are considered barriers to trade (for other countries products) but,
We produce very little……and export even less.
This was done on the first “basket offer” of goods in 2010 as per EU-EPA(Super WTO Agreement),but was unpublished for Bahamian edification but the government weighted the basket with seldom imported categories of goods thereby protecting revenue.
We missed the scheduled “baskets” in 2011 and 2012, perhaps partially through incompetence but also because the baskets would now have to include oft imported goods, thereby affecting revenue?
In any case, I don’t have a problem with straight Bananas, unlike Brussels. (not the sprouts)