TRQ Obvious USDA’s Economic Research Service has completed another excellent analysis, this time on the impact of tariff rate quotas (TRQs) on trade. Looking at 1,125 TRQs during the period 2006 - 2015, authors Jayson Beckman, Fred Gale and Tani Lee categorized them based on their in-quota tariff rates, actual fill rates, and relative domestic prices. Unsurprisingly, they found that too many fail in their obligation to allow minimal amounts of trade. In a concession to its recalcitrant members, the WTO set an arbitrary fill rate of 65 percent as being adequate. This is the grade school equivalent of making a D a passing grade. However, the authors found that the average fill rate is just 56 percent, a failing grade. The most e...
What You Need to Know Today: President Trump claimed the ceasefire between the U.S. and Iran was over, as both sides accused one another of violating the terms of the agreement. Commercial vessels are increasingly steering clear of the Strait of Hormuz as security risks escalate following Iran...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.