United States foreign worker clampdown will boost US milk production costs
MSCNewsWire - Nov 10, 2016 / New Zealand’s primary produce export opportunities are more likely to rise rather than decline with the election of Donald Trump as United States President. The reason is that the incoming president as a priority has the dismantling of the confrontation between the US and Russia.
The economic component of this stand-off is the United States-led embargo on exports to Russia. A détente will open up Russia especially to exports from the EU which is the United States main partner in the embargo.
The lifting of the embargo will introduce the free flow of food exports from EU nations into Russia. The problem for New Zealand since the embargo was installed is that the EU food exports, notably milk, have backed up all over Europe instead of going to Russia.
For its part Russia in defiance has enforced the embargo by destroying EU foodstuffs with back door labeling or being shipped under proxy bills of lading. French foodstuffs carrying face value Moroccan origination are just one example of this.
The dissolving of the US led embargo on Russia will also allow New Zealand which is also a partner in the embargo to start trading again directly with Russia.
New Zealand participation in this trade embargo with its self-damaging results has long been cloaked in a conspiracy of silence. Politicians and exporters alike have kept their mouths shut for fear of US reprisals.
Even though the incoming president has promised to scrap United States trade treaties in order to build US domestic employment, the abandonment of the Trans Pacific trade agreement signed by all participating countries in Auckland earlier this year is unlikely to present a serious problem to New Zealand exports.
The legislation attendant on the treaty is subject to a lengthy clearance process having only just navigated its latest reading in the New Zealand parliament. Other countries will take years to approve it. Critics claim that the Trans Pacific trade deal, and other such US treaties with other countries merely double up on what has already been achieved under the WorldTrade Organisation among other such bodies.
An additional point, and one that may make a President Trump resist pulling the plug on it is that the Pacific agreement is primarily viewed as a device by the United States to preserve its global supremacy in currency leadership. At least 80 percent of world trade is carried out in the USD and the United States is determined to stop China taking any part of this share with its own rival currency..
Meanwhile the central theme of Trump policy, curbs on immigration, is likely to add to the value of New Zealand primary products. This is because in the United States Mexico is the home of much of the US milk workforce at every phase.
A reliance on United States nationals to do the work will add greatly to the costs at every stage of US milk production.
From the MSCNewsWire reporters' desk / Thursday 10 November 2016
_____________________________________
Thursday 10 November 2016Last updated: 1543_____________________________________
- What can we learn from Trump’s victory? Writes Gareth
- A new approach to safer speeds
- 3 Ways President-Elect Trump May Shake Up Trade Policy
- Can John Key work with Donald Trump?
- Official Cash Rate reduced to 1.75 percent
- NZ dollar falls as greenback recovers, markets see positives for US growth in Trump win
- While you were sleeping: Stocks, greenback climb
- 'We owe him the chance to lead'
- Two new skills hubs announced in Auckland
- Government targets 50,000 apprentices
- 'Resentment vote' could see governments replacing central banks
- US Secretary of State John Kerry quietly slips into NZ ahead of historic Antarctica visit
_____________________________________
- Do not be afraid of defeat. you are never so near victory as when defeated in a good cause - Henry Ward Beecher (1813 - 1887)
_____________________________________- New Zealand's population today is 4,730,898 286 more than yesterday_____________________________________
Quotes From The Don:
“I will build a great wall – and nobody builds walls better than me, believe me – and I’ll build them very inexpensively. I will build a great, great wall on our southern border, and I will make Mexico pay for that wall. Mark my words.” - Donald Trump US Presidential Elections 2016_____________________________________
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242