World Perspectives

Infrastructure Lacks Correlation to Trade

The Biden Administration has said it is not interested in negotiating new trade agreements until the U.S. makes investments in things like infrastructure to better enable Americans to compete. However, the data does not support such conditionality. China makes an outsized investment in infrastructure at over 5.5 percent of GDP but has a trade surplus that is only about half the size of Germany’s despite the latter investing just one-eighth as much GDP into infrastructure. Italy invests a smaller share of GDP into infrastructure than the U.S., and yet runs a trade surplus versus America with the largest trade deficit in the world. Looking at the countries with some of the largest trade surpluses and trade deficits, the correlation to...

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From WPI Consulting

Infrastructure investment due diligence

On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.

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