The American farmers have been on the losing end of the current trade war. In China, the U.S. farmers’ market share for soybeans, pork, and other agricultural products is declining as the country shifts its focus and relies more on different countries. The South and Latin Americans have been the beneficiaries as China now buys more of their agricultural products.
Having observed the U.S. approach to protecting its domestic market, few of us thought the country’s leadership would encourage the import of competing products to challenge its domestic producers.
But that is what is happening now with the U.S. leadership encouraging beef imports from Argentina. Of course, the U.S. leadership has its “special” relationship with Argentina, so we can’t expect other countries to receive the same consideration.
Anyways, this issue with beef imports is starting to cause frustration. Reading the New York Times this morning, the following passages caught my attention:
“American ranchers, a longstanding bloc of support for President Trump, are voicing frustration over his plan to increase imports of beef from Argentina.
Beef prices are at record highs, and the president is seeking ways to lower the cost of burgers and steaks for the average shopper. Last week, Mr Trump first floated the idea of buying more Argentine beef. It’s also another way the United States could help prop up the Latin American nation’s sagging economy, which Mr Trump has said he wants to do.
On Wednesday, the White House made it official, stating that the United States would quadruple the amount of Argentine beef allowed into the country annually at a lower tariff rate.
In the days it took to complete the plan, Mr. Trump heard plenty of anger and skepticism from cattle country. The American cattle herd is at its smallest size since the 1950s, and finally, ranchers are benefiting from higher prices because of the smaller supply and are considering investing profits to rebuild their herds.”
These are interesting times. From a consumer perspective, allowing more imports to ease food price inflation pressures is an ideal path. But of course, this introduces a contradiction in the U.S. trade approach, which had seemed to promote an inward-looking approach. Now they are placing their farmers on the line to save Argentina?
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