Rent Seeking in Wallonia

The EU and Canada are currently discussing a trade deal, CETA, that would eliminate 98% of tariffs between the two regions.  However, recently the vote on this deal was postponed because of opposition from Wallonia, a French-speaking region in Southern Belgium, who believes that CETA will disadvantage its local farmers as they will have a tough time competing with imported Canadian products.

Tullock believes that rent-seeking occurs when resources are diverted by attempts to seek rents derived from activities that have negative social value. In Wallonia, thousands of people are protesting, votes have been delayed, and negotiations have been complicated because the Wallonians have been attempting to preserve their tariffs.  These rent-seeking activities waste time and money, and while they may protect individual farmers, they do not increase total social value.  In this case, the tariffs are already in place, so the Wallonians simply want to preserve them, but even this wastes resources.  While some Wallonians may be better off from the tariffs, overall, the EU and Canada would likely benefit from more free trade and increased competition, as trade creates value. 

With less competition, the Wallonian farmers can charge higher prices, but Canada's entrance into the market would increase supply and therefore lower prices.  So, consumer surplus would increase, but profits for Wallonian farmers would fall. Therefore, it is rational for the farmers to seek tariffs to protect their own profits, even though it hurts consumers and Canadian producers.