Source: FARM DOC DAILY, UNIV. OF ILLINOIS, 10/4/17


Potential trade disputes are approaching from all directions with significant implications for American agriculture. To the north and south, the US government is renegotiating the North American Free Trade Agreement [NAFTA] with Canada and Mexico. Just last week, the three countries met in Ottawa, with many thorny issues yet to be resolved. Also last week, the US imposed a tariff of almost 220 percent on certain models of aircraft produced in Canada. West, after withdrawing from Trans-Pacific Partnership [TPP] negotiations that would have affected trade across the pacific, the government has further threatened to pull out of the US-South Korea trade agreement. The US is also considering imposing tariffs on steel imports, a move aimed at China, but which also opens up disputes to the east, specifically with Germany, Turkey, and the UK. Many of these disputes are not about agriculture, but agriculture may be affected by the fallout. In particular, even non-agricultural disputes can generate retaliatory tariffs on our agricultural exports. History provides very clear examples as to how trade disputes impact agriculture.

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