Galiani notes limitations of tariff benefits
Local industries tend to lose global competitiveness
In a news article on MarketPlace, Sabri Ben-Achour writes on the history of tariffs and how they have been implemented previously. The story features comments from Faculty Associate Sebastian Galiani, stating that “every time you have conflicts or you have [external] trade disrupted, in the mind of the leaders and in the mind of the people is the idea that … we cannot trust to get everything through trade.” Galiani mentions how a similar situation in Argentina caused emerging industries to only be competitive inside of Argentina. Ultimately, Galiani noted that “being cut off from trade made economies less efficient and less innovative.”