It is actually the other way around. Internal producers simply cannot compete with external ones who can produce in multiple countries, in giant quantities at very low overhead cost and then sell reject goods for a very low price.

Africa has a big problem with this. Due to trade agreements, many European meat producers sell their "leftovers" into the African market at extremely low costs, which has lead to the demise of domestic producers of live stock. Which then resulted in a loss of jobs.

Yes, some people might be able to purchase things at a lower cost now, but some other people will loose their jobs and won't be able to purchase anything at all, which also negatively affects the domestic market.

For the outside producer is not a problem, they simply can move on. But kick starting a domestic market and bringing wages back up again will be huge issue for any government in the long run.