The historic election of Senator Barack Obama as the44th US President will no doubt bring much anticipatedchange to the US during the course of 2009. This,coupled with the topsy-turvy nature of theworld’s financial market, means the outlook forthe trading scene in the Americas is unclear at best.
The change in leadership will significantly alter thepublic policy landscape in the US and the impact ontrade is an important one. Already, some Latin Americancountries have expressed a desire to strengthen freetrade ties – a call reportedly supported byObama’s transition team – with foreignleaders urging the US to end its 48-year trade embargoon Cuba.
While perhaps more a sign of the troubling economictimes – supply nations will not want to deepenthe crisis by turning inward – some sources inWashington DC claim the Obama team may indeed fostercloser trade relations.
In the meantime, the incoming Administration isconsidering a series of initiatives to tackle thefinancial crisis, including injecting more capital intobanks, creating a market for illiquid assets andhelping borrowers who are struggling to make mortgagepayments.
The news will come as a welcome relief to fresh producesuppliers. The industry has beenquick to voice its opinions on the extent to which thecredit crunch will affect demand for fruits andvegetables, but, on the whole, most in the sectorremain positive.
According to PMA data, 72 per cent of US consumers arecooking at home and 67 per cent are buying less luxuryfood, while 32 per cent are shopping down to lowerpriced retailers or local stores. But, despitetightening their belts, they are still eating freshfruits and vegetables.
Together with the recent strengthening of the dollar,the outlook has buoyed many exporters’expectations for 2008/09. And, with uncertain tradingconditions in Europe likely to deter many fromdiverting fruit to the UK, Europe and Russia –like last year – North American importersanticipate 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 afew, have revealed to Fruitnet.com that theyplan to ramp up exports to North America thisseason.
