Re:Ghana will no longer sell cocoa to Switzerland
by imtringued on Saturday March 20, 2021 @09:22AM
(#26523034)
Even if we assume that protectionism is good in this case, there is actually a flaw in how they enact that protectionism. Ceasing trade with Switzerland can hurt farmers if the domestic industry doesn't grow fast enough. At the same time the entire idea behind ceasing trade with Switzerland is being based on the idea that your are cutting off supply to a competitor. Similar to cutting off oil exports to a nation you are at war with. If Switzerland can find a different country to import cocoa from, this could backfire spectacularly. The real answer would have been to ban imports of processed goods like chocolate. That way you won't get into this weird situation where your country is flooded with cocoa and chocolate that fails to compete against Swiss chocolate.
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