Global trade turmoil remains in the spotlight and FC Stone’s Arlan Suderman wrote in his July 16 Morning Commentary that “Europe and Japan have signed a trade agreement to fight against the protectionist efforts of the United States, failing to mention protectionist efforts of their own in recent decades.” He talked of the “battle of public opinion and political persuasion, with most countries decrying protectionism while fully engaged in the same, and aggressively so.”
FC Stone’s Dave Kurzawski, in the July 23 Dairy Radio Now broadcast, said the ultimate question is, “Are we in this to build walls and barriers to slow global trade or expand it?” He said our actions right now appear to want to minimize global trade, which would be troubling for U.S. agriculture.
“One thing is clear,” he said, “The U.S. has no trade agreement with Japan and it looks like all the other major exporters now have at least some advantage, or will have an advantage, in the coming years.” Suderman adds that “Few countries are willing to fully eliminate tariffs and other protectionist mechanisms, although most want you to believe that is precisely the environment in which they operate.”
Kurzawski sees the Administration’s actions as an exertion of power and leverage to “essentially better our place at the negotiation table and although things over the past eight weeks have been fairly grim as far as the trade wars are concerned, and it may still get worse before it gets better, but I do think there’s a light at the end of the tunnel.”
Listen to Lee Mielke’s interview with Dave Kurzawski here: