In this article, I will summarize the arguments for and against trade protection for American industries. Among the measures that can be used to restrict foreign trade are customs tariffs and trade quotas. Industries can also benefit from non-tariff barriers and various legislations that give an advantage to domestic products. In general, experts agree that foreign trade restrictions benefit domestic workers and businesses, while under free trade consumers have more and more quality of choice. [1] I will also examine the arguments for and against NAFTA, a major trade agreement between North American countries. Tariffs are perhaps the most common way to restrict, or at least slightly discourage, foreign imports. Customs duties are simply taxes on imported products. The idea behind imposing tariffs on these products is that it will cost foreign producers more to sell their products in the United States. However, the price is often passed on to the consumer. Even if the buyer can afford a cheaper U.S. substitute for the product, the consumer is still deprived of fair choices between substitutes, undermining fundamental market forces. So goes the anti-tariff argument. [2] Tariff protectionism, however, has its advantages. Due to fluctuations in currency prices, it is sometimes possible for foreign exporters to charge abnormally low prices for their products. This is called dumping and will significantly reduce the domestic competitor's sales. A customs duty can be added to artificially increase the price of the foreign product. Although this comes at the expense of consumers who want to buy the cheapest products, it benefits American companies and therefore may indirectly benefit consumers...... middle of paper ......edcontent.com/article /1362775/tariffs_import_quotas_and_exchange.html?cat=3. Accessed 03/02/10[3] Mike Moffatt. About.com: Economy. “Tariffs – The Economic Effect of Tariffs” http://economys.about.com/cs/taxpolicy/a/tariffs.htm. Accessed 03/02/10[4] Mike Moffatt. About.com: Economy. “Why are tariffs better than quotas? » http://nomics.about.com/cs/taxpolicy/a/tariffs_quotas.htm. Accessed 02/03/10[5] Import quotas. "http://www.albany.edu/~aj4575/LectureNotes/Lecture21.pdf. Accessed 03/02/10[6] Turley Mings and Matthew Marlin, [The study of economics: principles, concepts and applications ] (Dushkin McGraw -Hill, 2000) 413-414.[7] Walter R. Mears, "Clinton Broadens Argument for NAFTA" [McCook Daily Gazette] September 27, 1993. Google News Archive http://news.google.com/ newspapers? id=btogAAAAIBAJ&sjid=TWsFAAAAIBAJ&pg=1352%2C2596344. 03/03/10