Canada well positioned to take advantage of trade war
The US and China will be trading less with each other and more with Canada, Mexico, South Korea and others in the months ahead.
Statistics Canada reports that from April to August the value of Canadian exports to China rose 23%.
From the Globe & Mail:
“Take wool: The industry’s U.S. market has “basically evaporated on us
this year,” said Eric Bjergso, general manager of the Canadian
Co-operative Wool Growers Ltd., which markets more than 90 per cent of
Canadian wool. Chinese tariffs have largely rendered American wool
uncompetitive, and, as a result, the United States is now flooded with
local product. So Canadian wool is moving in far greater numbers to
China − shipments of unprocessed greasy shorn wool to the United States
have vanished in recent months, but soared nearly eight-fold to China
this August relative to last year.”
With US-China trading relations set for a long-term cooling, Canada and Mexico are particularly well placed to trade with both. It’s a theme I’ve been talking and writing about for weeks: