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EU trade deal delay could increase market volatility for U.S. farmers
An ag economist says the European Union’s decision to postpone finalizing the U.S. trade deal could have larger impacts for American agriculture.
Ian Sheldon with Ohio State University tells Brownfield, “They’re having a rethink in the EU parliament. They’re wondering if this will necessarily leave the EU in the best position. At the same time, they’re also seeking deals with other countries as a strategic hedge.”
He says the uncertainty around the deal could add more volatility to the markets.
“You’re adding the possibility that the EU is going to back away from the trade deal, so we’re adding more uncertainty into our trade agreements,” he says. “We need to focus on diversifying our exports for soybeans and corn.”
Sheldon says growing demand in southeastern Asian countries could open up new market opportunities for U.S. farmers.
The European Union is currently the 3rd largest U.S. agricultural trading partner.
AUDIO: Ian Sheldon, Ohio State University
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