the compact acts as a tariff barrier because processors have to pay the higher price to any farmer, whether that farmer lives in the New England region or not. That means if a Minnesota farmer or Wisconsin farmer can produce the product for less price, they have to add to their price before they can sell in that region. That is why it serves as a trade barrier.
David Obey: “the compact acts as a tariff barrier because processors have to pay the higher price to any farmer, whether that farmer…”
Editor's note · Context
Discussing the economic implications of a compact on agricultural pricing.
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