trade

Soaring demand from Americans for everything from iPads to cars is leading to a surge in freight crossing the Pacific, hitting business owners such as Nephew.

Now, with the ship lodged sideways in the canal, closing off the main oceangoing highway between Europe and Asia, much of that cargo is sitting idle. It's either waiting to transit the canal or stuck in port while owners and shippers decide what to do.

“Now basically, we have Mexican fruit coming in from March all the way to June. We start getting Peruvian fruit come August,” says Rob Dhaliwal, a blueberry grower from Lynden, Washington. “Even in July. Then we start getting fruit from British Columbia. So there is a good 10 months of foreign product coming into the country.”

An unprecedented number of ships have canceled their calls to the ports of Seattle and Tacoma. So far this year, there have been 32 canceled international sailings since January 1. That has created the shortage of shipping containers at those Northwest ports.

More countries are imposing export restrictions on essential medical materials, to try to keep domestically produced goods — like masks, gloves and ventilators — available for domestic needs.

Right now, all sorts of products aren’t reaching the U.S. because of the coronavirus outbreak that originated in Wuhan, China. Reciprocally, many U.S. agricultural and forestry products aren’t shipping back into China and other Pacific Rim countries. Global trade watchers say backed-up trade is building up on both sides of the Pacific Ocean.

The recently signed Phase 1 U.S.-China deal promises some relief. Details remain unclear, but the United States government’s interpretation of this deal is that China will purchase $40 billion of agricultural goods in 2020. Some analysts have questioned how realistic those estimates are, given that the highest level of farm products the United States has ever exported to China was $26 billion in 2012, although one Chinese agricultural consultancy company says this can be achieved.

While the new deal with China lowers some trade barriers, it leaves many tariffs in place. And it dictates that China buy more from the U.S., but that has other trading partners worried.

One day after its historic impeachment votes, the Democratic-led House gave President Donald Trump an overwhelming bipartisan victory Thursday on a renegotiated trade agreement with Canada and Mexico. By a 385-41 vote, the House approved a bill that puts in place terms of the United States-Mexico-Canada Agreement.

As part of the deal, the next round of 30% tariffs will not be imposed. More agriculture trade between the two countries is expected.