Carou-Selled When carousel retaliation (periodically changing the products targeted for trade retaliation) was introduced in 2000, the goal was to increase the uncertainty and broaden the pain inflicted to increase the chance of compliance by the targeted country. This week the Trump Administration adjusted the targeted products being punished in Europe over Airbus subsidies and the reaction was muted. In part because the products removed from retaliation are relieved, offsetting the screaming from the newly targeted products. It probably helped as well that the level of punishment was kept the same and USTR emphasized the goal of a negotiated settlement. With the WTO likely to rule next month on the level of retaliation Brussels can impos...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
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.