James Alexander Michie: The commercial battle intensifies and involves more sectors | CBC News
Author: James Alexander Michie
The commercial battle continues growing and each is intensifying more, in it have been involved and affected several sectors and it is worth noting that Canada does not escape from it.
One of those affected by this battle and all that it entails is one of the Canadian producers of soybeans, Philip Shaw, who of course had no plans to suffer the consequences of a situation of such magnitude, which could be called a global tariff storm that continually grows and similarly expands throughout the world. Likewise, according to Shaw, he really does not know what will happen with all this and supposes that it is something very bad for trade, for soy, in fact, it has been very bad for him.
Meanwhile, the president, Donald Trump, suggests increasing the bet with China, the NAFTA agreement that has qualified as the worst trade agreement in history makes it clear that Canadian exporters like the aforementioned, Philip Shaw, they are suffering, and even if it does not matter what the consequences of their actions may be, Trump is ready to hit Chinese imports with more tariffs.
Canada will suffer double blow by the actions taken by Trump and is that has been shaken by US tariffs such as Canadian steel and aluminum, add the effects of Canadian countermeasures that specialists claim are essential pieces in addition to being necessary , the costs of Canadian products have already been affected by counter-duties from China that were presumed to be specifically aimed at US targets.
Likewise, due to the threat by Trump to impose tariffs on more than half a billion dollars for Chinese goods, China is expected to return the blow, allowing the number of affected Canadian products to increase.
However, Canadian products should not suffer the consequences of foreign counter-sanctions, since some products, such as the majority of Canadian soybean in its route to reach the various world markets that it has a destination, do not pass through the EE.UU., unlike corn.
In spite of this, at the moment when the cost of US soybeans declined when China stopped acquiring them, the cost of Canadian soybean was also affected in such a way that it also declined.
Source: Don Pittis | CBC News
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