Addressing the trade deficit without hurting the ag surplus
An ag group agrees that the President needs to address the trade deficit, but doing so without hurting the ag surplus could become a challenge.
The president of the National Farmers Union says as President Trump focuses on trade, he needs to address the trade deficit.
Roger Johnson says is is debilitating to the nation’s economy. “It’s over a half a trillion dollars a year,” he says. “It’s a 3 percent drag on our GDP, it’s 2 to 5 million jobs that don’t exist in the US.”
But, he tells Brownfield – the trade deficit can’t be fixed if the ag trade surplus is broken in the process.
Johnson says relationship with countries like Mexico have been damaged and now they’re shopping for ag goods elsewhere. “They’re looking to replace it not because the price is too much,” he says. “They’re actually going to pay more if they buy from South America. They’re not going there for quality. They don’t get better quality than what they buy from the US. They’re going there because they’ve been offended.”
He says the loss of those market shares would result in a decline in the ag trade surplus.
AUDIO: Roger Johnson, National Farmers Union