Tag Archives: Canada/Mexico/US Trade policy

American Farmers in a race with the rest of the world…

Donald Trump’s ‘Buy American’ isn’t gonna help them….

They HAVE to stay in the world markets or lose their shirts…..

Rural communities likely will bear the brunt of the continued pressure on farmers, as job losses and lower farmland values cut the tax base for schools and other public services.

Anxiety over the U.S. role in agricultural trade has grown in recent months amid moves by President Donald Trump to withdraw the U.S. from the Trans-Pacific Partnership, which was backed by many farm groups, and potential changes to the North American Free Trade Agreement, which they say helped develop exports to Canada and Mexico.

Russia over the past decade boosted its wheat harvests by 61%, the USDA forecasts. Corn acreage has nearly tripled in Russia, and more than doubled in Ukraine. Brazil and Argentina have also ramped up output of the grain.

Foreign farm powers in South America and Eastern Europe owe some of their grain-market victories to favorable exchange rates—a strong dollar, the currency used for global trade, means foreign grain priced in local currencies can reap bigger profits.

Other countries have structured trade policy to benefit their farm sectors and have invested in infrastructure such as barge terminals and railroad networks to cut transport costs.

In the U.S., about one-third of the corn crop is used for fuel production, and conservation programs have removed land from farming.

The shift has benefited global food security. Having multiple, strong exporters of grain around the world can help prevent supply disruptions due to weather or trade, farm economists say.

Also part of the silver lining: booming international revenue for U.S. companies such as Monsanto Co. , Deere & Co. and Mosaic Co. , who sell genetically engineered seeds, satellite-guided tractors and fertilizer to farms outside America. In some cases, U.S. companies design products and seeds specifically for foreign markets….

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An Economic tug of war is brewing with China….

President Donald Trump took over the leadship of the world strongest economy on Friday…..

This morning he broke America from joining the Trans Pacific Partnership that President Obama was working for and will seek to renegociate the decades old NAFTA agreements with Canada and Mexico that Bill Clinton put in place…

Trump has indicated that he thinks the Chinese are not being fair to the United States in trade and that he can do better….

Several other countries have begun to agree with Trump’s view that the Chinese ARE beginning to protect their markets at the expense of outside countries..

Trump  had promnised during the Presidential campaign to bring outsourced jobs back to America by American industry…

A Trade War IS in the wind across the planet…..

The new U.S. president has threatened to slap steep tariffs on Chinese goods to protect American workers, and has said he might label China a currency manipulator for keeping the value of the yuan low to boost exports. Several economists have questioned whether tariffs are likely to bring jobs back to the U.S. and pointed out that China has recently been trying to prop up its currency, not weaken it.

Mr. Zhang said launching a trade war wouldn’t be putting America’s interests first. “The goals Trump has set will be very difficult to achieve in a closed environment,” he said.

Mr. Zhang said China would continue to push for a free-trade agreement in the Asia-Pacific region, a competitor to the U.S.-led Trans-Pacific Partnership trade deal. Mr. Trump has said he would pull the U.S. out of the 12-nation TPP. The agreement requires U.S. ratification to come into force.

The Chinese diplomat also pointed to his country’s $3-trillion “One Belt, One Road” development initiative, which aims to rebuild the old Silk Road trade routes between East and West, as evidence of the country’s dedication to economic interconnectedness.

Foreign governments and companies have accused Beijing of adopting mercantilist policies that unfairly favor Chinese companies and products through subsidies and restrictions on foreign access to lucrative markets….

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President Donald Trump will abruptly end the decades-old U.S. tilt toward free trade on Monday by signing executive orders to withdraw from an Asia-Pacific accord that was never ratified and to renegotiate the North American Free Trade Agreement.

Trump’s trade-focused executive orders, part of a series of actions planned for Monday, fulfill a campaign promise to rewrite America’s trade policy during his first days as president. In declaring his determination to renegotiate Nafta, Trump will end an agreement that has governed commerce in much of the Western hemisphere for 22 years. By scrapping the Trans-Pacific Partnership accord negotiated by former President Barack Obama, Trump will delight many of his most fervent supporters as well as a good many Democrats, while opening an economic vacuum in Asia that China is eager to fill….

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