The European Union as a “Colonial Power”

The key economic policy for colonial powers was to prevent manufacturing activities in the colonies. Alexander Hamilton, the first US Minister of the treasury, explained why the US had to start manufacturing in order to have economic independence. High value added to the raw materials was the key. Today we find the EU e.g putting heavy duty on Argentine beef, forcing the country to produce soybeans for EU cows instead. This brings Argentina backwards in the value chain, artificially making EU nations cashing in on the highest stage in the value chain: Beef for human consumption. Ukraine has experienced a similar colonial economic policy: the EU has prohibited an export tax on scrap metal (even though the EU does not compete in the oil pipe market where this metal is used). Similarly Ukraine’s export duty on whole timber has been challenged by the EU, forcing it to be a supplier of raw materials.