Rabobank market research head predicts a decline in free trade
The farm sector should brace itself for a great swing towards an unwinding of today’s free trade policies, he says.
During the next decade or two he expects the world will probably divide into major trading blocs, forcing Australia to decide between China or the US for its economic future, and its security.
“If you are only looking at Trump, you’re are only seeing half the story,” said Hong Kong-based Mr Every.
Historically, “trade has never been free or fair” he told last week’s Outlook 2017 conference.
“We’ve only tried global free trade for a total of about 100 years in 5000 years of civilisation, and it’s failed twice,” he said.
He believes China will take up the mantle from the USA with plans to increase free trade with new investments in infrastructure.
“Officially its government vision is to build a mammoth $US3t `silk road’, rail and port network linking China with Central Asia, Europe and Africa – the `One belt, one road’ (OBOR) project.
“At the end of the day Australia has to decide if the US defence umbrella will still protect this country or if you should follow the money and be aligned with China.
source: northqueenslandregister.com.au
