U.S. Trade Action Targeting Traditional Allies Strengthens Chinese and Russian Competitiveness

The Research Lead with Agri-Food Economic Systems suggests, by sabotaging agricultural trade with its traditional allies including Canada, the U.S. is eroding its competitiveness with China and Russia.An Independent Agri-Food Policy Note released by Agri-Food Economic Systems investigates the effect of a U.S. withdrawal from its traditional alignment with the west on agricultural trade.Research Lead Dr. Al Mussell observes, over the last number of years, the U.S. has become more protectionist.

Quote-Dr. Al Mussell-Agri-Food Economic Systems:

We seem to be entering a period which some have called resource nationalism.That is to say, the natural resources for what have you, energy, rare earth minerals, water and certainly agriculture and food are increasingly scarce and countries are angling with one another to tie up those resources to provide the goods that they need for their countries.That's a different environment than the rules-based trade, mostly free trade or relatively free trade, so the U.S. is no longer leading that movement.

They're much more on the protectionist side, much more worried about looking after themselves.And then other countries who really have to worry about resources relevant to populations for people they have to feed, they're in the same boat so it changes the dynamic, I think, quite significantly.So, the first thing, we need we need to, and I'm sure we are, communicate with our American colleagues and help them understand that, throwing your traditional allies under the bus to try and get the quick gain for you, actually, what that's doing is strengthening your counterparts. It's strengthening China in that strategic competition.

Where we have outright enemies and I'm talking about the Russians here, it strengthens them too.Dr. Mussell says Canada and the United States can have their disagreements, and we most certainly do, but on this big stuff we need to get on the same page.The Independent Agri-Food Policy note can be accessed at agrifoodecon.ca.
For more visit Farmscape.Ca.