Invisible Tariffs: A Concern for the Economy
Tariffs, which raise government revenues and protect the domestic market, are popular among politicians due to their short-term benefits, such as job creation.
However,
in the long run, they stifle competition and innovation, slowing down the economy and job creation.
A recent forum on non-tariff barriers in Africa revealed that these barriers are a significant concern, likened to the unseen part of an iceberg.
- Tariffs are the visible part, while non-tariff barriers are the underlying issue.
- Non-tariff barriers determine the success or failure of trade, much like feelings determine the success of a romantic relationship.
Author's summary: Invisible tariffs harm the economy in the long run.