Ambassador Branstad talks about personal relationships in trade

by | May 27, 2022 | 5 Ag Stories, News

Trade is one of our main focal points in agriculture. Without trade, we have nowhere to ship our goods. While many countries have different cultures which affect how we conduct business, it all boils down to one common foundation: personal relationships. It is much more beneficial to do business with someone you know and trust.

Nowhere is the personal relationship in business more appreciated than in Asian cultures. That is what Former Iowa Governor and Ambassador to China Terry Branstad told attendees at U.S. Meat Export Federation (USMEF) meetings in San Antonio this week. He talked about his relationship with Chinese President Xi Jinping, and how that has been cultivated for almost four decades. Growing to a point where the Chinese President considers the Iowa people as friends. Branstad added that ag groups like the USMEF are building on those lessons, but those personal relationships had a hard time during the epidemic.

China has a very strict zero-tolerance policy when it comes to COVID. Branstad talks about how that policy can shut down a large economy with a minimal number of cases.

China has been working on trade relationships with Brazil and other South American countries while our own situation is surrounded by question marks. Branstad says that he feels that this isn?t a huge worry because China needs access to supplies year-round, and having relationships with the world?s two biggest producers gives them options to fill that year-round demand. The Ukrainian situation also has China in a tough spot.

While Branstad has a strong relationship with China, he says we need not put all our eggs in one basket. We need to keep diversifying our export markets, and we have been doing a wonderful job so far.

(Audio provided to IARN by Susan Littlefield, KRVN)