Trade barriers have been swept away by free trade agreements so the economies of countries are more closely connected. In case of an economic downturn such as we are in now the effects of economic problems in one country such as the subprime mortgage crisis and other woes in the US have had worldwide effects.

It seems to me that trade barriers insulate a country to some degree from economic problems in another country. The less Australia is dependent on exports the less the market for our goods drying up affects us. The fewer foreign loans Australia makes the less we have to worry about entities in other countries repaying. Putting tariffs on imported manufactured products would give Australian industries more of a chance to develop. Imported goods require energy for transport and pollute the oceans and the air by exhaust in transport. We can control environmental and labour standards for items produced in Australia but not for imported goods. Capital can easily move across international borders but not labour so Australia workers have to compete with Chinese. Should we reconsider free trade and place restrictions on international investments and borrowings?

Dear David F

depends on what 'kind' of trade barriers.

The current British situation where racist econimics are being practiced by the government (indirectly) and contracting companies directly.. are abhorrent and the govermnent seems to have decided:

-the noise and bluster from the Unions demanding British workers for British jobs is something which will blow over.

Welllll.. who knows... some of those workers might feel that they have been abandoned by their government...having nothing more to lose and ..well.. who knows what they might do.. but here is an interesting article!

http://en.wikipedia.org/wiki/List_of_assassinated_people

Gordon Brown.. in an interview, morphed into the epitomy of "Yes Minister" it was classic. He just declared the workers position 'indefensible' then woffled on about how they are doing so much for Britain! utter rubbish!

Contracting companies offer lower prices because they employ foreign labor..Italian in this case at lower rates.

If this is 'the future' then no amount of moral high ground will save millions of workers in the West from losing their jobs to foreign workers on the basis of the EU and it's laws over-riding British LAW!

hmmmm one step closer to:

"so that no one could buy or sell unless he had the mark,"

I also find it intrigueing..that the Brussells EU parliament has a symbol of a woman on a bull.. "The Rape of Europa" from Greek Mythology. The Parliament building also is build to resemble the unfinished Tower of Babel!

Doubt me? check it out!

Trade Barriers...hmmm if the removal of them is based on specific negitiations which will advance ONE segment of our economy (e.g. mining) at the expense of another....or many others.. (Manufacturing) then.. BUILD THAT WALL!

*Putting tariffs on imported manufactured products would give Australian industries more of a chance to develop*

Err, we tried all that back in the 50s, 60s, 70s. The result was
very expensive and shoddy consumer goods, with the rich in the
Melbourne establishment, milking their little monopolies for all
they were worth. Consumers were the big losers.

Australia with its 20 million people, is too small to make
everything. Best we do what we are good at and where we have
a comparative advantage.

Unless of course you are happy to pay 8000$ for your Aussie
made computer and 100$ for your Aussie made shirt.

If you want our standard of living to drop dramatically, just
being back tariffs.

This notion that its about those Chinese with cheap labour,
is a nonsense. I gather that the world's leading exporter of
manufactured goods is in fact Germany. Not exactly cheap labour.

Dear Yabby,

A manufacturing capability is not built overnight. I see no reason that Australia could not build up a capability to rival Germany's if it were given time. Tariffs give that time.

With free trade there is no chance.

David, Australian industry had time, all they did was pocket the
profits and raise costs for efficient exporters, making them
less efficient.

What it comes down to, is what are Australians good at? That
really comes down to individual companies. So you can see that
individual companies are doing well in Australia.

We make large ferries for instance, as I guess there were some
entrepreneurs operating in this field. We are good at making
some mining equipment, some agriculture equipment, we export
those.

Fact is we don't even have the labour to work in industries where
we have a comparative advantage, like meat processing. They rely
on migrants and 457 workers, Aussies have it too cushy and don't
want the jobs.

In WA, we have had a shortage of nurses, doctors, teachers, policemen,
the army and navy are short, builders, the list is endless.

Aussies seemingly don't want to do crappy jobs like work on
production lines anymore. That is the reality, certainly
in many parts of the country.

Dear Yabby,

With automated factories necessitating skilled engineers and designers there is little need for anyone to do a crappy job like working on an assembly line. If we developed the capability we would be ahead of the Germans whose industrial plant depends on some degree to that type of labour. The assembly line can be made obsolete.