Dec 2008
Change to shape new year panorama
01 December 2008 15:14
Gill McShane
The historic election of Senator Barack Obama as the 44th US President will no doubt bring much anticipated change to the US during the course of 2009. This, coupled with the topsy-turvy nature of the world’s financial market, means the outlook for the trading scene in the Americas is unclear at best.
The change in leadership will significantly alter the public policy landscape in the US and the impact on trade is an important one. Already, some Latin American countries have expressed a desire to strengthen free trade ties – a call reportedly supported by Obama’s transition team – with foreign leaders urging the US to end its 48-year trade embargo on Cuba.
While perhaps more a sign of the troubling economic times – supply nations will not want to deepen the crisis by turning inward – some sources in Washington DC claim the Obama team may indeed foster closer trade relations.
In the meantime, the incoming Administration is considering a series of initiatives to tackle the financial crisis, including injecting more capital into banks, creating a market for illiquid assets and helping borrowers who are struggling to make mortgage payments.
The news will come as a welcome relief to fresh produce suppliers. As seen in the December 2008/January 2009 issue of Americafruit Magazine, the industry has been quick to voice its opinions on the extent to which the credit crunch will affect demand for fruits and vegetables, but, on the whole, most in the sector remain positive.
According to PMA data, 72 per cent of US consumers are cooking at home and 67 per cent are buying less luxury food, while 32 per cent are shopping down to lower priced retailers or local stores. But, despite tightening their belts, they are still eating fresh fruits and vegetables.
Together with the recent strengthening of the dollar, the outlook has buoyed many exporters’ expectations for 2008/09. And, with uncertain trading conditions in Europe likely to deter many from diverting fruit to the UK, Europe and Russia – like last year – North American importers anticipate a return to traditional volumes.
As the pendulum swings back in favor of the dollar, exporters of Chilean grapes, Peruvian mangoes, Brazilian papayas and Italian kiwifruit, to mention a few, have revealed to Americafruit Magazine how they plan to ramp up exports to North America this season.
The historic election of Senator Barack Obama as the 44th US President will no doubt bring much anticipated change to the US during the course of 2009. This, coupled with the topsy-turvy nature of the world’s financial market, means the outlook for the trading scene in the Americas is unclear at best.
The change in leadership will significantly alter the public policy landscape in the US and the impact on trade is an important one. Already, some Latin American countries have expressed a desire to strengthen free trade ties – a call reportedly supported by Obama’s transition team – with foreign leaders urging the US to end its 48-year trade embargo on Cuba.
While perhaps more a sign of the troubling economic times – supply nations will not want to deepen the crisis by turning inward – some sources in Washington DC claim the Obama team may indeed foster closer trade relations.
In the meantime, the incoming Administration is considering a series of initiatives to tackle the financial crisis, including injecting more capital into banks, creating a market for illiquid assets and helping borrowers who are struggling to make mortgage payments.
The news will come as a welcome relief to fresh produce suppliers. As seen in the December 2008/January 2009 issue of Americafruit Magazine, the industry has been quick to voice its opinions on the extent to which the credit crunch will affect demand for fruits and vegetables, but, on the whole, most in the sector remain positive.
According to PMA data, 72 per cent of US consumers are cooking at home and 67 per cent are buying less luxury food, while 32 per cent are shopping down to lower priced retailers or local stores. But, despite tightening their belts, they are still eating fresh fruits and vegetables.
Together with the recent strengthening of the dollar, the outlook has buoyed many exporters’ expectations for 2008/09. And, with uncertain trading conditions in Europe likely to deter many from diverting fruit to the UK, Europe and Russia – like last year – North American importers anticipate a return to traditional volumes.
As the pendulum swings back in favor of the dollar, exporters of Chilean grapes, Peruvian mangoes, Brazilian papayas and Italian kiwifruit, to mention a few, have revealed to Americafruit Magazine how they plan to ramp up exports to North America this season.
|