A Politico report says the real winners of a trade war with China could be some of America’s top global trade competitors.
As the two countries push toward a trade deal, long-term trends could be stacked against American producers when it comes to Beijing’s consumption. China will likely keep pouring resources into other countries in an attempt to diversify its sources for everything from agricultural goods to consumer goods.
Brazil could bring millions of new acres into production faster with the help of Chinese investments in its roads and railways, which could be a detriment to American growers. The South American nation has taken over the globe’s number one spot as top soybean producer, supplanting the U.S.
USDA estimates show that Brazil is already projected to increase soybean acres dramatically over the next 10 years. The challenge will be difficult to overcome for U.S. producers, who have all but maxed out their growable acres.
China is also encouraging its own soybean farmers to increase their production.
From the National Association of Farm Broadcasting News Service.