Think of the European Union. Its common external tariff keeps out labor-intensive goods from poor countries. This creates opportunities for the countries within the EU that have the cheapest labor, which are the poorest member countries. The middle, with relatively cheap labor, is protected from the very cheap-labor extreme. Now think it through for a scheme among the bottom billion. The common external tariff keeps out skill-intensive goods from rich countries. This creates opportunities for those countries within the club that have the most skills, which are the richest members. The
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