China just gave Russia a big boost with a 50,000-ton
order for pork. This will be a big loss for the EU. Rival pork producers
are eyeing the Chinese market, the biggest in the world for pork.
China
is retaliating against the tariffs on EVs in many ways. And it is now
being directed at where it hurts most - agriculture and farmers. You
see, farmers in EU are already attempting to keep out cheaper
agricultural products from Ukraine, the result of less stringent
measures over environment issues during production. Remember the farmers
protest that erupted in Brussels that were the result of this? Farmers
in the EU are unable to compete and are desperate. EU may even become a
net importer rather than an exporter of agricultural products if famers
close shop and lost their livelihood to cheaper imports.
Now
China is targeting farmers in the EU, and they have no way to retaliate.
China found new sources of pork from Russia and Brazil to enable it to
move away from the EU and the USA. This is going to hurt farmers in EU
and USA. It will encourage more farmers in Russia to raise more pigs to
satisfy the demand from China. 50,000 tons is just 3% of the pork
consumption in China annually. Russia is targeting 10% of the Chinese
market. That is bad news for the USA and EU.
The West is gearing up for a trade war and they will get it.
Anonymous
USA vineyard owners are facing ruin as grapes grown for wine making are left unharvested to rot in the fields. The era of hyping up the benefits of drinking red wine as beneficial to health is now wearing thin. The generation of wine drinkers over the last two decades have aged and are drinking less, while the younger generation are not picking up the habit. It spells the end of the wine drinking craze.
ReplyDeleteThe other reason for the calamity befalling the USA vineyards is the competition posed by cheaper imported wines from the EU and even Australia. This is already an issue that the USA had with EU wines with a 25% tariff slapped on the EU. The USA wine producers, like in any other sector in the USA, is unable to compete and have to rely on tariffs to be erected to keep out the competition and keep themselves in ICU to stay alive. This is not a solution and is more like breeding a 'crutch mentality' that does nothing to make them find ways and means to compete. They just stagnate or die in years to come.
What about the China market for wine that had not been factored into the decline. China does have a wine market for the EU and also Australia. 1.4 billion Chinese is not a small market, even if not many are taking up the wine drinking habit. The forecast is that wine sales in China will grow going into the next couple of years. Of course, the USA wine makers cannot compete in China against cheaper wines from France, Spain or Australia.
Anyway, trade wars are easy to win with the use of tariffs. Let us hope the USA voters see the light in November, LOL.
In the land of the blind, the one-eyed man is king.
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