Trump Is Singlehandedly Decimating America’s Agriculture Sector

If Donald Trump has a reputation in business, it is as a crooked operator who bilks his creditors, investors, contractors, and suppliers alike and files bankruptcy at about six or seven times the rate most people get a divorce. Trump brought that notorious business acumen to the Oval Office and has already put the hurt on American agriculture with an ill-advised threat to pull out of the North American Free Trade Agreement (NAFTA). As reported here about a month ago, just the uncertainty of Trump’s intent for NAFTA has cost the American agriculture industry dearly as Mexico rapidly resorted to its “plan B” and made fabulous deals with several other reliable nations and markets. The losers, as usual, are some of Trump’s staunchest supporters and the rest of the population that will suffer the consequences of an isolationist malcontent in the White House.

It has been a couple of months since Trump pulled out of the Trans Pacific Partnership (TPP), but now the already struggling agricultural sector has another reason to mourn the idiot in the White House. The massive 12-nation trade agreement was set up to be extremely friendly, and highly profitable, to American agriculture because it covered “a whopping 40 percent of the world’s economy.” Since expanded agricultural trade and elimination of tariffs for American products was hard fought, and won by President Obama, for American farmers the Trans Pacific Partnership was a lifeline.

The agriculture sector hailed President Obama’s efforts, and success, at giving American farmers their long sought after chance to eliminate tariffs imposed by nations in the TPP. Those tariffs restricted “the onetime breadbasket” of the world from selling its meats, grains and dairy products to massive importers of agricultural products such as Japan and Vietnam. Now, those products are going to be sold by many other nations that comprehend the benefits of “free trade” sans “punishing tariffs” and eagerly grabbed the TPP lifeline for their agricultural sector.

With an isolationist fascist and incompetent business failure in the White House, that “lifeline” for America’s farmers vanished faster than America’s “already struggling agriculture sector.” The only positive in this horrendous news is that the “struggling agriculture sector,” a huge Trump support group, will suffer before the rest of the population; but they still continue to support him because he pledged to make America white again. According to a report in Politico, even farmers who are scared to death their businesses are set to succumb at the hands of a notoriously inept businessman in the White House still support Trump.

Trump’s incredibly boneheaded stunt of pulling out of the world’s biggest trade deal is being described as  “a double hit on most agricultural producers,” and one in particular is a prime example of what happens with an isolationist moron in the White House.

In Eagle Grove, Iowa, the trade deal promised an increase of $10 billion in agricultural output over the next decade according to conservative estimates by the U.S. International Trade Commission. It is noteworthy too that the $10 billion figure is “an increase” in output that means a monumental increase in income, jobs and profits.

Now, those “increases” will not materialize because of Trump and it portends even more damage than just losing a projected $10 billion and the jobs it would deliver. Not only did Trump’s decision to withdraw from the trade pact wipe out American farmers’ ability to sell their goods to the 11 other nations making up 40 percent of the Earth’s economy with no tariffs, it virtually eliminated America’s agriculture sector as a global competitor.

It opened the floodgates for “rival exporters” such as Australia, New Zealand and the European Union to negotiate even lower tariffs with importing nations. Add to that a recently announced extraordinarily enormous trade agreement between the European Union and Japan and it doesn’t look promising for America’s struggling agriculture sector; especially after President Obama negotiated phenomenally good deals for American producers. Trump’s screw-up created greater competitive advantages for several other nation-producers over American agricultural exports. America’s farmers should expect even more bad news in the coming months, if not weeks, as the rest of the world stops needing American agricultural products.

According to a Politico analysis, the remaining 11 countries still in the TPP are actively engaged in a stunning 27 separate trade negotiations with each other; including with other major trading powers in the Pacific region like China and massive blocs like the EU. Those 27 deals without the United States range from exploratory negotiations to deals already signed and awaiting ratification. And, because of Trump, seven of the most significant deals that would have been extremely beneficial for America’s agriculture sector have been concluded without U.S. participation or inclusion since Trump withdrew America from the substantial trade agreement five months ago. Anyone in, or remotely connected to, the agricultural sector should be horrified at what their white hero did to their families, their industry, and their means of income.

One North Carolina-based family pork and poultry business made a huge investment in processing plants in anticipation of an equally huge return due to TPP favoring America’s farmers. Now Ron Prestage says, “I’m scared to death;” and he should be.  Mr. Prestage said his family already started digging the wells and moving dirt for another new processing plant and he fears they may have gone “beyond the point of no return on the new plant.”

According to an agricultural economist at Iowa State University, Dermot Hayes, the idea of farmers and the agriculture sector making big investments based on an epic “free trade” deal is not just normal; it is a good and savvy business investment. Mr. Hayes said in referring to the Prestage operation and other pork-industry investments, “At the time those investment decisions were made, the U.S. had never turned down a free trade opportunity.

Of course the United States has never had a self-professed genius with no interest or knowledge of international trade in the White House either, so maybe Trump shafting the agriculture sector was unexpected; especially from his staunch supporters in the agriculturally rich Midwest.

Mr. Hayes noted that the livestock industry in particular had “in its sights a future of expansion amid soaring export growth.” But with Trump withdrawing from TPP, all of that expansion and soaring export growth “has pretty much disappeared.”

It wasn’t just the livestock industry that harbored the highest expectations on the back of President Obama’s hard work.

Most in the industry expected a boom from exports as a result of TPP, with continued strong sales made possible by NAFTA.”

In one growing and highly profitable market for American farmers producers were set to expand sales of organ meat and other items not easily sold domestically, because Vietnam was completely eliminating its tariffs on American products altogether under TPP. It is why “free trade” is beneficial for all the party’s involved – no or low tariffs are a dream scenario for exporters but not acceptable to a “no-account business genius” like that imbecile Trump.

Now, because there is an idiot in the White House, those tariffs, like every other nations’ tariffs, remain in place for American agricultural products because the United States ruled by dumb Don is not interested in “free trade.” Unfortunately, a growing number of countries are not interested in any kind of trade with America for one good reason; they have already negotiated and signed trade agreements with many other reliable and fair trading partners.

Trump’s record in business is littered with broken and bankrupt companies due to his so-called “renowned business acumen,” and now the record can add America’s agricultural sector among the pile of Trump’s destruction. And in case any American thinks that because they aren’t farmers Trump’s handiwork will not affect them, wait until they have to pay $10 to $15 for a tomato out of season and then watch America’s agriculture industry go bankrupt; all because they supported a corrupt con man who promised to make America white again.

h/t Politico

Japan and the EU Show Trump Real Global Leadership At G20

This week all eyes were on the meeting of the Earth’s 20 largest economies and particularly American idiot Trump’s meeting with his puppet master Vladimir Putin. What seems to have been lost, at least thus far, in the highly anticipated gathering was an announcement that because Donald Trump is as ignorant about world trade as he is the U.S. Constitution, America will no longer be the leader in global trade; it will likely not be second either. There had been plenty of warnings that Trump ceded America’s global economic lead to China with any one of the global agreements he unilaterally decided didn’t make America great, but it appears that the global lead is going to Japan and the European Union with China in second place and Trump’s “great America” falling far behind.

Some may recall that one of the reasons President Barack Obama, and this nation’s leading economists, manufacturing industries and corporate leaders, gave for being intricately involved in the Trans Pacific Partnership was to allow America to dictate its own economic destiny. Because Donald Trump is such a failure at business, and he is a flaming failure, and because he is an ignorant sot and megalomaniac, he extricated America from the TPP.

According to Trump, he and only he can “make the best deals” and only he can force the rest of the world, including our valued allies and trading partners, to bend to his will. So, on Trump’s first full day in a place he doesn’t belong, he unilaterally withdrew America from the TTP and pledged to force Canada and Mexico to renegotiate the North American Free Trade Agreement (NAFTA).

Those actions solidified Japan and the European Union’s commitment to take control of their global economic futures and force America out of its leadership role in global economics and trade and relegate it to a less than significant role. The two economic powerhouses waited to announce what is being hailed worldwide as a “massive trade deal” until the G20 meeting this weekend. By putting off their announcement, all 20 of the planet’s economic leaders were present to witness Japan and the EU “take the leadership reins away from America” because Trump has “withdrawn America from the global trading arena” to be “great again.”

As the Trump was dazed and confused, and wandering around lost on a stage in Poland, Japan and Europe were “sending a pointed message to the U.S. We’re taking your place as global leaders in free trade.”

The “massive trade deal” more than rivals the largest free trade accord in the world, NAFTA, and as a senior fellow at the Peterson Institute for International Economics, Caroline Freund stated:

Two big, highly globalized economies are stepping up and showing they’re going to continue liberalization — with or without the US,”

As noted in the Washington Post, the massive trade pact between Japan and the EU “is yet another momentous consequence of Trump’s decision to withdraw from Trans-Pacific Partnership negotiations during his first full working day as president.”

Those consequences are in addition to the damage Trump inflicted on America’s massive agriculture industry with the threat of withdrawing from NAFTA, or at least “renegotiating” what he thinks would be a better deal. By now only an idiot refuses to admit that dumb Don Trump is too ignorant to know what a good deal is, much less negotiate a “a better” one. At a meeting last month American, Mexican, and Canadian trade representatives concurred that they all “want NAFTA left alone.” Trump may have easily screwed over investors, students, suppliers and contractors in his corrupt business “deals,” but powerful nations’ economic leaders are not going to be swindled by the likes of Trump.

In recent years Japan’s top priority has been the TPP because it would have allowed it to trade with the largest and most advanced economy in the world, the United States of America. And it would have become a key player in the “largest free trade bloc in global history” accounting for a whopping 40 percent of global GDP. It also would have given Japan a “strategic counterweight to communist China’s hegemony in Asia.

That prospect inclined Japan to put aside a promising trade agreement with the European Union; that is how promising a prospect for all the players the Trans Pacific Partnership was. Now there is an even more promising deal and besides not being one of the players, America will not be involved because Trump.

According to Edward Alden, a senior fellow at the Council on Foreign Relations and noted trade expert:

I have no doubt the final rounds [of the negotiations] were accelerated to try to conclude the deal as quickly as possible and send a message that the EU and Japan are prepared to lead on trade – without the US. The fact that it was concluded right before Trump’s first G-20 summit is a symbolic poke in the eye to the Americans.”

America under the antagonistic Trump regime has incurred more than a few “pokes in the eye” in just a few months. A recent global poll found that Trump has singlehandedly “tarnished America’s image” on six continents, and that doesn’t include making a laughingstock out of himself at the G8 meeting last month. Because of his predilection to running his big bigoted mouth, he has created a world of economic hurt for the American agriculture industry with not one, but two ill-advised and bigoted policies. He has also damaged the American tourism industry because very few foreign travelers want to set foot in a nation of racists and bigots.

The kind of America that Trump thinks is great will continue alienating our friends, allies, and trading partners; something that was not occurring prior to Trump being allowed to move into the White House. America may still be great as far as having a powerful military, but like any business or corporation with a clueless and single-minded simpleton at the helm, the United States surrendered its global leadership on trade because Trump.