TO THE TRADERS OF LE HAVRE – II

It is therefore easier and more loyal to assert the principle of commercial freedom first.

Frédéric Bastiat
Complete Works, Volume 7, pages 134 to 138 (in French)
Mémorial bordelais, October 23rd, 1846

In this second letter, Frédéric Bastiat responds to the criticism made that he should focus on the privileges granted to the steel industry rather than demanding the end of protectionism in general, which increases the number of opponents to all those who benefit from such a privilege. The example of the English League focusing on the repeal of the corn laws supports this position. What he tells us here is that the source of tariffs is different in England where the landlords used to be the beneficiaries thanks to their majority in parliament, while in France, protectionism comes from the mistake that consists in believing it supports national labour. To restrict the fight to the privileges of the steel industry would only give it the argument that the privileges are rightly granted to others. As the mistake is what needs to be fought, the fight must be about the principle of commercial freedom. This is the point of today’s quote.

Besides, I note that there is an interesting paragraph concerning the demand to suppress tariffs. Frédéric Bastiat starts from the hypothesis that a tariff of 10% on all imports need to be kept as a fiscal levy and then suggests to suppress all tariffs above that level in a linear way over five years. This is exactly what will be suggested by Milton Friedman 130 years later (video, 2’23’’) when the question of suppressing tariffs in the United States will be discussed.

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