7-2-2012 Carrello (Part 1): I am reading Dinarland members comments regarding the need to postpone the tariffs, and I would agree on the premise of most of them: the poor do not need a tax they cannot afford. Yes, most assuredly, but why can they not afford the tax?
Why can they barely afford food, shelter, and clothing? Because they do not have jobs. Unemployment hovers around 30%. They don't have jobs because industries have not been developed within Iraq except for oil, which is burgeoning, but only benefits a few.
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Loans have not been available until recently for small businesses to further development. The government has embezzled and squandered money allocated for agriculture, transportation, water projects, and energy, and poverty is one of the results.
7-2-2012 Carrello (Part 2): Tariffs provide protection for goods produced within a country and tariff schedules are written to apply different tariffs levels to the goods imported according to the the viability, resources available, and need for a commodity to be produced within a country to avoid high importing prices, i.e., there was a 40% tariff on dates. Why so high?
Because Iraq was at one time the largest date producer in the world and the industry needs to be redeveloped in order to build employment, and in turn, the country. A high tariff makes the imported dates too expensive, so the commodity ends up being seen as a good business and developed within Iraq. More business, more jobs and if the business is really good, they can export the product.
7-2-2012 Carrello (Part 3): I would think that the goods that are currently being imported to Iraq have a price that is fairly high. If the Iraqis want dates and Iran can supply dates, the price is up to the Iranians to apply.
Supply and demand, and the lack of competition within Iraq, makes for a wicked scenario. The monies collected from tariffs are going (supposedly) towards agencies that will monitor not only goods entering the country, but agencies to improve people's lives; clean air, clean water, etc,
Do you think Iran and Maliki would be able to man handle Iraq and have influence the way they do, if the Iraqi people were financially set, if they were not hungry and hot, just a few of the basics of oppression.
The development of Iraq, therefore tariffs, are a security issue, as with any Middle Eastern country, or any country for that matter. If we think of tariffs as just being a tax and inflicting further misery on the poor, we do not see the whole picture, which is actually the path to a bountiful country that can stand on its own.
Hence, the World Trade Organization's requirement for tariffs for ascension to full membership. "The WTO provides a forum for negotiating agreements aimed at reducing obstacles to international trade and ensuring a level playing field for all, thus contributing to economic growth and development." This is why tariffs are required for WTO full membership.