Tariffs, Non-Tariff Barriers, and the 1905 Chile Food Riot
This paper examines the economic mechanisms of tariffs and non-tariff barriers (NTBs) as tools of trade restriction, outlining how specific and ad-valorem tariffs affect consumers, domestic industries, and foreign manufacturers. It also introduces non-tariff measures including technical barriers to trade and sanitary measures. Using the October 1905 Santiago, Chile food riot as a historical case study, the paper illustrates how protectionist tariff policy can generate real social unrest. The riot, involving tens of thousands of participants and stemming from rising staple food prices linked to an 1897 cattle import tariff, demonstrates the far-reaching consequences that trade policy can have on everyday life and social stability.
- Introduction to Tariffs: Defines tariffs, specific tariffs, and ad-valorem tariffs
- How Tariffs Shape Trade Policy: Effects of tariffs on consumers, industry, and trade wars
- Non-Tariff Barriers and Non-Tariff Measures: Defines NTBs, NTMs, TBT, and SPS measures
- The 1905 Santiago Food Riot: A Historical Case Study: How cattle import tariffs sparked violent Chilean unrest
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What makes this paper effective
- It grounds abstract economic concepts — tariffs and non-tariff barriers — in clear, accessible definitions before applying them to a concrete historical event.
- The case study of the 1905 Santiago riot vividly illustrates how trade policy translates into real-world social consequences, making the argument memorable and persuasive.
- The paper moves logically from broad theory to specific example, creating a satisfying conceptual arc from policy mechanism to human impact.
Key academic technique demonstrated
This paper demonstrates the technique of using a historical case study to validate and animate theoretical economic concepts. By connecting the abstract mechanics of protectionist tariff policy to the documented social unrest in Chile, the author shows how economic theory has tangible human consequences — a standard method in economic history and political economy writing.
Structure breakdown
The paper opens with a definitional section on tariffs (specific and ad-valorem), then broadens to discuss tariff effects on trade policy and market competition. The third section introduces non-tariff barriers and their subcategories. The final and longest section applies these concepts historically through the 1905 Santiago food riot, discussing the role of infrastructure, protectionist legislation, and communication failures in shaping the event's outcome.
Introduction to Tariffs
A tariff is essentially a tax imposed on goods and services that are imported. The most fundamental use of a tariff is to restrict trade by increasing the cost consumers must pay for imported goods and services. Some tariffs are termed specific tariffs, as they are designed to levy a fixed fee on a particular type of item. A tariff that is levied according to the value of certain items is called an ad-valorem tariff.
How Tariffs Shape Trade Policy
Tariffs are used to shape trade policy, and they can benefit governments and domestic manufacturers since they generate additional revenue — but they do so at the expense of consumers and foreign manufacturers. As a general rule, consumers will purchase goods manufactured in foreign countries since those goods tend to be priced lower than domestically produced alternatives. An inadvertent complication of tariffs is that they reduce global competition for domestic industries, thereby tending to make those industries less efficient over time.
When competition intensifies, countries that export goods may counter with their own tariffs on goods imported into their countries, which can trigger trade wars. A number of international agencies exist to combat unfairly steep and impactful tariffs. The World Trade Organization is a prominent example of an association with this mission.
Non-Tariff Barriers and Non-Tariff Measures
Non-tariff barriers (NTBs) take a different approach to trade restriction by employing conditions, prohibitions, or certain market requirements that make it difficult or expensive for target products to be imported or exported. Non-tariff barriers are an umbrella construct that includes non-tariff measures (NTMs), which in turn include technical barriers to trade (TBT) and sanitary or phytosanitary (SPS) measures.
A wide range of measures adopted by authorities or enacted by governments can result in non-tariff barriers. These measures include conditions, laws, policies, regulations, restrictions, and specific requirements, as well as business practices or outright prohibitions — all of which are designed to protect the interests of domestic industry from competition originating in other countries.
References
Benjamin, S. (1997). Meat and strength: The moral economy of a Chilean food riot. Cultural Anthropology, 12, 234–268.
Tariffs. (2014). Investopedia. Retrieved from http://www.investopedia.com/terms/t/tariff.asp
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