Brazil developed a secret process that effectively quadrupled its output
of coffee from its coffee plantations. This secret process enabled it to
significantly undercut the prices of U.S. domestic producers. Would
domestic producers receive a sympathetic ear to calls for protection from
Brazil's lower cost coffee? How is this case different from that of
protection against cheap foreign labor?
This is a hypothetical situation where Brazil developed a secret process which allows them to increase production of coffee by FOUR TIMES. That means they can sell their coffee MUCH CHEAPER than before which would HURT the coffee producers in the USA because nobody will want to buy THEIR coffee at a higher price.
So, YES, the domestic coffee producers WOULD get sympathy from the US government because if they cannot sell their coffee then they will GO OUT OF BUSINESS. Politicians want to protect the people from unfair competition. If they don't, then they will not get re-elected.
Apr 24th, 2015
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