“We advocate nothing but what is agreeable to the highest behests of Christianity - to buy in the cheapest market, and sell in the dearest.” - Richard Cobden
Someone I know recently bought a 40in Sony television. He was going to buy it from a high street retailer, but saw that that it was £300 cheaper on the internet. He asked the shop if they’d match the price, and they said he should very careful buying from those sort of internet retailers “because they might be selling grey imports”.
The term “grey import” is used as a smear term. In fact, it is an important part of free trade. Just as the Heath government’s abolition of retail price maintenance led to lower prices in the 70s, grey imports help consumers take advantage of global competition to get a better deal.
Grey imports also mean we benefit from lower taxes: the National Heath Service and pharmacies import drugs from buyers in other European countries, where they have negotiated better pricing. If grey imports were stopped, taxation would have to rise.
As we become part of an increasingly globalised economy, producers will find it increasingly difficult to differentiate between different national markets. The ability to launch books in different countries on different dates has become difficult thanks to websites like Amazon which will sell the US edition before the UK edition is out. The ability to restrict which countries can watch a DVD has broken down thanks to ease at which most DVD players can be made to play DVDs intended for any region.
The globalisation of markets might not please all producers, but for consumers and taxpayers alike, it’s an excellent process.
Tags: grey imports, parallel trade