The trade climate during the Trump Administration is a source of debate in the Ag industry. Many said they had no problem with revisiting and updating trade agreements. Many also said that China had to change its ways of doing business. However, there are those who wished the former President Trump would have gone about these negotiations in a different way. Many were against the wholesale slapping on of tariffs, especially when that tit-for-tat got way out of hand in dealing with China.
President Biden has said he is going to use a different strategy when it comes to dealing with trade. However, he also said he was not just going to reverse what had been accomplished overnight. There were changes that had to be made. Farmers for Free Trade is one of the organizations that are hopeful that President Biden will be more about thawing the icy relations we have with several countries that we just renegotiated trade with.
Brian Kuehl of Farmers for Free Trade says that his organization is hopeful for a change in trade policy. He knows that tariffs will not be done away with overnight, but he is optimistic that there will be a gradual reduction in the first half of Biden?s term. Easing back some of the more unnecessary trade penalties.
Kuehl also says that they are hopeful the United States can return to the Trans-Pacific Partnership. While the U.S. does have a bilateral trade agreement with Japan, they are severely lacking with other Pacific-Rim countries. However, it might still call for some negotiation.
Europe is a different story. Since the BREXIT, we still need to have a trade agreement in place with Great Britain. The European Union has also been a slippery slope on negotiations, especially with their strict regulations on agriculture products.
Even on more solid trade pacts, like the United States ? Mexico ? Canada Agreement, there are some issues that we must iron out. There are still dairy disputes with Canada, which led to the whole need for a renegotiation of the former NAFTA pact. Also, there is a chance that there may be reforms in the future of the World Trade Organization as well.
There is a lot on the radar for trade for the new administration. Agriculture is watching with a hopeful and cautious eye.
