Trade has been front and center for agriculture for many years. It seemed to have an extra bright spotlight on it during the Trump Administration. We saw many trade deals renegotiated. The biggest of these were the United States ? Mexico ? Canada Agreement (USMCA) and the Phase One trade deal with China. The later is set to expire at the end of the year, with no word on how trade relations will be going forward.
So, what are we looking at as we head into a new year?
I had the chance to speak with Iowa Farm Bureau Federation (IFBF) Senior Economist Sam Funk during their annual meeting earlier this month. We talked about trade and where things are going as we get ready to flip the calendar. China is the biggest question mark we see on our trade front is with China. Funk compares last year to this year, and how that will play into next.
With a population and economy the size of China, you must understand how just small changes to their demand can have large ripple effects around the globe. It also stresses the need to capture as much of the global market share as we can.
While the USMCA trade pact is in place and finalized, there is still a lot to consider when it comes to trade with our two closest neighbors. Funk says that IFBF will keep working with other national organizations to keep up those trade relationships.
One of the steps that can be taken to strengthen our trading position is upgrading the infrastructure. With the upgrade package through Congress and approved by President Biden, we can now turn our attention to getting to work. Funk discusses what that means for Iowa.
For Iowa that includes the Mississippi. The ?Father of Waterways?, as President Lincoln once called it, needs some serious work, and most of the interior United States will benefit from it.
We have progressions in place, and we have progress that needs to be started. The sooner we can roll up our sleeves and get to work or to the negotiating table, the more Iowa farmers can benefit from the efforts undertaken.
