Balanced Trade on the Horizon?
June 17, 2010
While most shipping analysts maintain that the undervalued Chinese Yuan should still be a concern for U.S. exporters, there are those who say that surging demand may make it less of an issue in the near future.
According to Walter Kemmsies, chief economist at Moffatt & Nichol engineers, China’s appetite for our raw commodities will drive a more sustainable and balanced trade relationship.
“China will soon have problems feeding its growing population,” Kemmsies, told shippers attending the annual conference of the Agriculture Transportation Coalition in San Francisco last week. “They will rely increasingly on our ability to get them these goods.”
Younger populations elsewhere in Asia will also drive U.S. food exports, said Kemmsies, and that will be reflected in more outbound containerized shipments. If this country is to finally come out of its deep recession, Ag exports must be a key and lasting component.
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