Trump & Trade - how might pork markets be affected?
Since his inauguration last month, the new President, Donald Trump, has been reconsidering the US stance on global trade.
Trump has been supporting a protectionist, anti-globalisation agenda which he believes will support the US manufacturing business. However, such a stance could damage US pig meat exports. Being the largest global exporter, this could impact on other exporters, including the UK.
The desired renegotiation of NAFTA (North American Free Trade Agreement) is particularly relevant to the global pork industry. US tariff-free access to the key Mexican market could be under threat which may ultimately benefit EU pork exporters. The Trans-Pacific Partnership (TPP) is another free trade deal which the Trump Presidency has now withdrawn from. This was a disappointment to the US pig industry, as Japan is the second largest destination for US pork exports.
On the other hand there has been interest from both parties in a closer UK-US trading relationship, in light of the impending Brexit. This has unsurprisingly been welcomed by the US pig industry.
With trade a vital factor determining the future of the global pork markets, it will be important to follow US trade developments as they unfold over the coming months and even years.
To read more about latest developments click here.
Bethan Wilkins, Analyst
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