Standards or RegulationsCountry prohibits

product that does not meet specific standards—often health, safety, or environmental—set by government

Marine Mammal Protect Act (MMPA)

Tuna Fish

Note Reward Day12/1/2010

BARRIER #11981 Recession

◦Auto companies struggling (half mil unemployed)

◦U.S. consumers buying large amount of Japan imports

◦Japan limits imports via ”Voluntary Export Restraint” 1.68 mil - 1983 1.85 mil – 1984 2.3 mil – 1985 Program ended in 1994

◦Causes price of Japanese cars to go rise $1,200

Questions to Answer

What type of barrier is this (tariff, quota, embargo, regulation, or subsidy)?

How does action described limit trade? Why was the action taken? What was the

government(s) trying to achieve?Who benefited from this actionWho suffered losses?

Barrier #220 percent of catfish market of U.S. imported

from VietnamHalf million Vietnamese living of industryHurting people in Mississippi

◦Want all catfish sold to have marked package of country of origin

Vietnam regulation was not as strict as U.S.◦Processed for cheaper, sold for cheaper

Law passed in 2000 that only the “Ictaluridae Catfish” could be labeled as catfish in grocery stores

Questions to Answer

What type of barrier is this (tariff, quota, embargo, regulation, or subsidy)?

How does action described limit trade? Why was the action taken? What was the

government(s) trying to achieve?Who benefited from this action?Who suffered losses?

Barrier #3

Cuban Sugar Crisis?◦1959 Cuba becomes friends with Soviet Union

and communist ◦U.S. at time was importing lots of Sugar and had

many Oil refineries in Cuba◦1960 – all trade with Cuba (to and from) is

prohibited◦1962 – JFK all travel and financial communication

with Cuba is illegal◦Idea is make Cubans life difficult and have them

raise against leader

Questions to Answer

What type of barrier is this (tariff, quota, embargo, regulation, or subsidy)?

How does action described limit trade? Why was the action taken? What was the

government(s) trying to achieve?Who benefited from this action?Who suffered losses?

Barrier #4Farmers in 1920’sU.S. struggling from

overproduction of food supplies◦ South America and Asia

Decline in agriculture goods prices

Smooth-Hawley Act◦ Raised taxes on imported food by

60%Caused 60 other countries to

raise taxes on American imported goods

Played a role in lengthening and arguabley starting the Great Depression

Questions to Answer

What type of barrier is this (tariff, quota, embargo, regulation, or subsidy)?

How does action described limit trade? Why was the action taken? What was the

government(s) trying to achieve?Who benefited from this action?Who suffered losses?

Barrier #5

1776 90% of Americans worked on FarmsCurrently at or below 2% 1985 was at 12%Export Enhancement Program

◦Government pays farmers additional $ for wheat exports

◦Allows for sale of wheat to other countries for cheaper

Questions to Answer

What type of barrier is this (tariff, quota, embargo, regulation, or subsidy)?

How does action described limit trade? Why was the action taken? What was the

government(s) trying to achieve?Who benefited from this action?Who suffered losses?

Today’s Work

Go online and find an article that discusses a country currently (or recently) using a type of trade barrier and answer the following questions?◦What country used the barrier? Who was it

used against?◦What type of barrier was it?◦Was it affective?◦Why was it implemented?◦Who gained? Who suffered?