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"The Idiocy of Protectionism"

From The Economist:

FORD makes transit vans in Turkey, with passenger seats in the back. When the vans are shipped to America, the brand-new seats are immediately torn out and recycled.

Why? Because 46 years ago, Europe slapped tariffs on American chickens. America retaliated with a tax on European commercial vans.

 

To get round this, an American firm's European factory adds passenger seats to its commercial vans so they can be classified as passenger vans, which attract a lower tariff. Then it trashes the seats once the vans are safely landed in Baltimore. 

Sometimes the rules that make the least sense last the longest.

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