World Perspectives

Transatlantic Dynamic; Doubling Down

Transatlantic DynamicThose in U.S. agricultural trade policy agree with Donald Trump that the EU treats America badly.  The large U.S. agricultural trade deficit with the EU has been growing at a compound annual growth rate of over 6 percent. Since WWII, the U.S. has subsidized Europe’s security and economy. Yet, Brussels has just completed a free trade agreement with agricultural competitor Mercosur, but not with the U.S. Why? In general, Europe’s opposition to a trade agreement with the U.S. can’t be about agriculture since Mercosur is an even lower cost competitor for the EU than American farmers. Instead, Europe is seeking to expand its economic alliances with somewhat weaker trading partners where it can better dominate, and...

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From WPI Consulting

Communicating importance of value-added products

Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.

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