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ARGENTINA ECONOMY IN FREE FALL BlowMeAI: Argentina's BIG Decision Shocked the U.S.: What the Hell is Going On? PLAY YOUTUBE VIDEO Original article: https://www.youtube.com/watch?v=ex-kwm-B9qI Peter Burgess COMMENTARY Peter Burgess
Argentina's BIG Decision Shocked the U.S.: What the Hell is Going On? BlowMe AI Oct 9, 2024 60.1K subscribers ... 42,902 views Argentina's bold attempt to dollarize its economy has collapsed, raising concerns far beyond its borders. With inflation at over 211%, and the peso devaluing at an alarming rate, the failure of this economic experiment could have ripple effects for the U.S. and global markets. As countries like China and Russia seek alternatives to the U.S. dollar, could Argentina’s crisis weaken the dollar’s position as the world’s reserve currency? This video explores the economic chaos in Argentina and what it means for global financial stability. Join this channel to get access to perks: / @blowmeai Transcript 0:00 the Nobel prize winning Economist Simon kusnitz once analyzed the world's economies this way he said there are four kinds of countries developed underdeveloped Japan and Argentina say Argentina is the country that never misses an opportunity to miss an opportunity in a small office in Buenos Ires a black market deal is underway if they're caught those involved could end up in jail but it's not drugs or weapons being sold it's money despite the risks deals like this are common place in Argentina's capital Javier M wants to dollarize the economy a move he says would blow up the central bank if you want to understand what happens when inflation really goes off the rails go to Argentina annual inflation there over the past year was 211% Argentina's currency the so is 1:00 collapsing its poverty rate is above 50% for instance mle says Argentina is not in a position to have its own currency because inflation is uncontrollable he believes the Central Bank robs the population when it uses notes you know what yes I'm going to end the central bank because it's the origin of inflation that is it's the little machine that prints money do you know why I'm going to end inflation because it's the way in which you steal from us do you know how much the government stole from us with the monetary mission in more than years since we left convertibility $280 billion the country's latest attempt at economic stabilization through dollarization has collapsed spectacularly leaving not only Argentina but also the United States facing potential economic tremors 2:19 Argentina's economic woses have reached alarming levels inflation is expected to go up to 123% at the end of the year marking one of the highest rates globally the country has defaulted on its external debt unable to meet its Financial Obligations to creditors as if these challenges weren't daunting enough Argentina now faces the Spectre of a steep recession these issues aren't new to the South American Nation they're the latest chapter in decades of economic instability characterized by persistent fiscal deficits that have plagued successive governments in a country where the local currency is in freef Fall promising to replace that currency with the US dollar can seem like a magical solution this is precisely the platform on which Argentina's new 3:04 president Javier mle campaigned and won mle a far-right Libertarian and self-professed anarco capitalist proposed a radical plan to dollarize Argentina's economy his idea was simple yet courageous scrap the peso entirely and adopt the US dollar as the country's official currency M's dollarization plan went beyond just changing the currency he advocated for the complete elimination of argentin Central Bank arguing that this drastic step was necessary to instill fiscal discipline and end the cycle of hyperinflation the timeline for this ambitious overhaul was set at 9 months to 2 years a time frame that many experts viewed with skepticism given the complexity of the task the appeal of dollarization is rooted in its potential benefits proponents argue that it could effectively control inflation by anchoring the economy to a stable currency they point to examples like Ecuador which saw its inflation rate drop from an average of 40% in the 1990s to about 4:05 4% after dollariz in 2000 similarly El Salvador and Panama which have also adopted the US dollar have experienced relatively lower inflation rates compared to their Regional peers Beyond inflation control dollarization promised other advantages it would potentially eliminate currency risk making Argentina more attractive to foreign investors the inability to print money would force fiscal discipline addressing one of the root causes of Argentina's persistent economic troubles supporters of the plan also argued that it could lead to long-term economic stability and growth breaking the cycle of boom and bust that has characterized Argentina's economy for decades however the reality of implementing dollarization in an economy the size of Argentina's has proven far more challenging than anticipated instead of calming economic turbulence the push for dollarization has intensified the chaos the peso continues to lose value at an alarming rate devaluing by 4% every month which 5:06 translates to an incredible 230% annual devaluation this rapid depreciation has led to a phenomenon economists called gresham's law bad money drives out good in practice this means argentines are hoarding US Dollars viewing them as a safe haven against the collapsing peso dollar deposits have soared from $15 billion to nearly 30 billion in a very short period but this apparent flight to safety is creating its own set of problems the dollars aren't circulating in the economy instead they're sitting untouched in savings accounts leaving Argentina's Financial system Frozen in place the currency crisis has created a confusing and dangerous situation with dual exchange rates officially1 Us doll is valued at around 974 pesos but on the black market that same dollar trades for up to three times of actual price a staggering 70% difference this massive 6:04 gap between official and Street rates is causing chaos for businesses and consumers alike companies struggle to set prices while ordinary argentines find it increasingly difficult to manage basic expenses like groceries and rent Argentina's economic issues extend far beyond its currency wow the country is mired in a deep recession with GDP shrinking for three consecutive quarters businesses are Clos in Investments are drying up and the economic Outlook grows Bleaker by the day the human cost of this crisis is staggering over 55% of Argentina's population now lives below the poverty line the middle class is rapidly shrinking and daily life has become a struggle for most argentines from skyrocketing food prices to Rising unemployment the economic decline is eroding any hope for a quick recovery the collapse of Argentina's dollarization experiment has serious implications for the United States if 7:01 one of Latin America's largest economies can't achieve stability using the US dollar it raises doubts about the Dollar's reliability as a Global Currency this could lead to instability in markets far beyond Argentina's borders investors in businesses alike might start to question the strength of the dollar potentially triggering a broader crisis of confidence as tensions rise in the Global Financial system other countries are already exploring alternatives to the dollar for trade Nations like China and Russia are seeking to reduce their dependence on a currency controlled by the US Argentina's struggles could embolden these efforts encouraging more countries to diversify away from the dollar this shift could have profound implications for US economic leadership and Global Financial Dynamics the repercussions of Argentina's crisis could extend to trade relationships as well a weaker dollar resulting from this situation could make American exports less competitive the value of us Investments abroad could also decline creating a scenario where 8:04 American businesses and workers feel the impact of Argentina's turmoil this illustrates the interconnectedness of the global economy and tells us why the US needs to pay close attention to Argentina's economic collapse as Argentina grapples with its economic crisis some experts suggest looking beyond dollarization for Solutions one potential path forward involves strengthening econ iic ties with China China already Imports 76% of Argentina's beef exports by shifting Focus from Dollar dependence to Alternative trade Partnerships Argentina could diversify its options and potentially reduce its vulnerability to peso inst stability increased collaboration with China might lead to more investment trade deals and access to resources that could help stabilize Argentina's economy this approach could also signal a shift in global economic power dynamics potentially reshaping 9:00 Regional alliances in Latin America however this path is not without challenges political instability entrenched corruption and structural economic issues pose significant risks effective governance and strategic policy implementation will be critical for Argentina to capitalize on any new Partnerships and create a sustainable economic model the technical challenges of implementing dollarization in an economy the size of Argentina are formidable the process in involves complex currency conversion requiring the exchange of all pesos held by individuals and businesses for US Dollars this includes assigning dollar values to all assets and contracts such a move would effectively disband Argentina's Central Bank handing the Reigns of monetary policy that is the power to set interest rates and print more money over to the US Federal Reserve one major hurdle is Argentina's lack of sufficient dollar reserves according to Capital economics Argentina has a $7.5 billion hole in its 10:03 foreign currency reserves meaning it owns fewer dollars than it owes to creditors abroad as Christopher sabatini senior research fellow for Latin America at chadam house told CNN the central bank doesn't have enough dollars they just aren't there it's still got a $44 billion debt with the international monetary fund which it doesn't have enough hard currency to pay back the government would likely find it difficult to raise the doar through other means the IMF has effectively barred Argentina from accessing International markets while it pays back its debts the government would also need to convince its citizens at home and abroad to return their pesos and mass and to do so calmly to avoid a wave of speculation further trashing the value of the local currency people would need to take wheelbarrows of cash to convert to Dollars sabatini said the sheer complexity of what melee is tossing around as an idea is difficult to conceive of on a practical level the 11:04 financial system would need significant adjustments banking operations lending practices and borrowing terms would all require overhauls to function in a dollarized economy additionally extensive legal and Regulatory changes would be necessary to support the new currency regime while other countries have attempted dollarization Argentina's case is unique due to its scale dollarized in 2000 El Salvador followed in 2001 and Panama has used the US dollar since 1904 however Argentina's $650 billion economy dwarfs these examples making the potential impact and risks much greater Ecuador's experience offers some insights after dollar rizing its inflation rate fell dramatically however Ecuador has still faced economic challenges including two debt defaults since a adopting the dollar the case of 12:01 Argentina also raises important questions about the relationship between monetary policy and democracy as countries became more democratic after World War I governments found it harder to maintain the economic policies required to uphold rigid monetary regimes like the gold standard this is because as economic historian Barry ien green argues maintaining such systems often required both fiscal and monetary tightness which mostly came at the expense of the newly enfranchised working class even if melee succeeds in enacting his dollarization policy during his presidential term it's likely that the issue will remain contested particularly if the transition to a dollarized economy is accompanied by economic hardship given the current dollar shortage dollarization will probably necessitate fiscal tightening resulting in a recession and a temporary hike in inflation one can thus expect that public opinion will at some point be become less favorable towards dollarization the experience of the 13:03 United States with the gold standard provides an important cautionary tale here although the 1879 adoption of the gold standard enjoyed wide support at the time gold convertibility became a major political issue for decades to come for dollarization to credibly survive such future waves of unpopularity a return to the pzo needs to be not only prohibitively costly economically but also also hard to implement politically by Future democratically elected governments ultimately Argentina's struggle with dollarization is more than just a cautionary tale of Economic Policy gone wrong ultimately Argentina's struggle with dollarization is more than just a cautionary tale of Economic Policy gone wrong China and Hungary are deepening ties during a visit to the central European country by Chinese president xiin ping but that's about to change byd is working on planned in Hungary to bypass EU import tariffs Hungary is increasingly turning its gaze Eastward 14:05 drawn by the Allure of bricks as tensions between Budapest and Brussels reach a fever pitch prime minister Victor orban's government is charting a course that could reshape hungary's geopolitical landscape today the commission has decided to refer Hungary to the court of justice um because it considers its national law on the defense of um sovereignty to be in breach of EU law recent clashes over Democratic Values rule of law and foreign policy have pushed Hungary to the brink of isolation within the EU rather than backing down orbon is doubling down seeking new allies and opportunities Beyond Europe's borders enter bricks the economic block comprising Brazil Russia India China Iran Egypt Ethiopia the UAE Saudi Arabia and South Africa which Hungary now sees as an attractive alternative to Western dominated institutions this geopolitical 15:05 pivot comes at a critical juncture with the EU freezing billions in funds and initiating legal action against Hungary orban's government is feeling the squeeze yet Hungary strengthens it ties with Russia and China and expresses interest in bricks cooperation hungary's right-wing populist government has passed a law quote protecting National sovereignty to defend against what the ring party has called undo political interference by Foreign persons or groups in December 2023 Hungary passed what they called the sovereignty Protection Law this legislation introduced by Victor orbon essentially gives the state new powers to investigate individuals suspected of undermining hungary's sovereignty it allows for the creation of a new agency with broad investigative Powers including the ability to access sensitive personal data and financial information the eu's response was Swift 16:01 in September 2024 they took legal action against Hungary over this law Brussels argues that it violates EU principles of democracy and rule of law their concern that it could be used to silence opposition voices and further erode Democratic Norms in the country but here's where it gets even more interesting the law doesn't just impact domestic politics it's having real consequences for hungary's role within the EU in September 2024 Hungary was scheduled to be the main chair of EU meetings about Democratic standards essentially a country facing legal action over its Democratic backsliding was set to lead discussions on the very principles it's accused of violating the EU has had concerns about hungary's Democratic standards for years now and they've been trying to address it through various mechanisms one of these mechanisms is the withholding of EU funds as of September 2024 billions of Euros in EU funding for Hungary remain Frozen the EU is using this financial leverage to try and push 17:03 Hungary back towards compliance with EU Norms they've even imposed fines on Hungary for various infractions but here's the thing instead of bringing Hungary back into the fold these actions seem to be pushing it further away Ukraine is another major point of contention between Hungary and the EU While most EU countries have been United in their support for Ukraine following Russia's Invasion Hungary has been the odd one out orban's government has repeatedly vetoed EU military aid packages for Ukraine they've even gone as far as to accuse Ukraine of discriminating against Hungarian companies when Hungary took over the rotating presidency of the Council of the EU their agenda notably lacked any mention of support for Ukraine this has caused significant friction with other EU member states and institutions it's not just about Ukraine itself but what it represents a fundamental disagreement over the eu's foreign policy and its stance towards 18:00 Russia unlike many EU countries that have been trying to reduce their dependence on Russian energy Hungary has continued to purchase Russian oil and gas despite EU sanctions and efforts by other Western Nations to reduce dependence on Russian energy the southern branch of the drba or friendship pipeline delivers thousands of metric tons of Russian oil daily to the state controlled Mo Refinery near Budapest while the EU banned Russian oil imports after the invasion of Ukraine hung along with Slovakia and the Czech Republic secured exemptions unlike its neighbors Hungary has since struck new preferential deals to increase supplies from Russia it has become moscow's largest Energy customer in the EU purchasing $343 Million worth of oil and gas in January alone additionally Hungary is constructing a new pipeline to transport Russian oil products into Serbia but it doesn't stop there the paxu nuclear power plant project being built by Russia's State nuclear energy corporation rosatom on the danu river 19:02 south of Budapest further cements hungary's energy ties with Moscow this has raised eyebrows across Europe with many questioning whether it's wise to increase energy dependence on Russia given the current geopolitical climate Russian state-owned company rosatom is set to begin the construction of two new nuclear reactors at the Hungarian Pax power plant the expansion plan stems from a 2014 deal between the two countries trees which will see the plant's nuclear capacity more than double the Expansion Project is set to be carried out with a Russian loan and will cost some 12.5 billion EUR the Hungarian foreign minister celebrated the beginning of the works it is now clearer than ever that the countries that have nuclear energy and nuclear power plants can feel more secure in terms of their energy Supply the greater the nuclear energy capacity of a country the safer it will be in the future UK ukine has strongly criticized hungary's continued energy 20:01 dealings with Russia an adviser to Ukrainian President Vladimir ziny Ole ustenko accused Hungary of complicity in alleged Russian war crimes stating if you've seen the video where Russians cut the head off a Ukrainian Soldier the hungarians are paying for the knife Hungarian foreign minister Peter sajaro defended the country's position saying the security of hungary's energy Supply requires uninterrupted transportation of gas oil and nuclear fuel to meet these three conditions Hungarian Russian energy cooperation must be uninterrupted it has nothing to do with political preferences the European commission has initiated several infringement procedures against Hungary over various rule of law concerns these range from issues with judicial Independence to restrictions on media freedom and academic Independence the European Parliament has also been active on this front they've repeatedly called for stronger action against Hungary even going so far as to criticize the 21:03 European commission for not being Tough Enough there have been several rulings from the European court of justice on hungary's compliance with EU law hungary's relationship with Russia has been a source of tension between Budapest and Brussels for years now while most EU countries have been distancing themselves from Moscow especially since the invasion of Ukraine Hungary has been moving in the opposite direction the political alignment between Hungary and Russia is significant prime minister Victor Orban has been one of the most vocal critics of EU sanctions against Russia he's argued that these sanctions hurt Europe more than they hurt Russia and he's pushed for a more conciliatory approach towards Moscow hungary's position on the Ukraine conflict has also raised eyebrows while they've condemned The Invasion their response has been much more muted compared to other EU countries they've resisted calls to provide military aid to Ukraine and have been skeptical of Ukraine EU membership 22:00 aspirations this stance has put Hungary at odds with many of its EU and NATO allies speaking of NATO hungary's delay in ratifying Sweden's NATO accession has been another point of contention While most NATO members quickly approved Sweden's application Hungary along with turkey held out this has led to speculation about whether Hungary is acting in concert with Russia's interests the economic ties between Hungary and Russia are significant despite EU sanctions trade between the two countries has remained robust Russian investments in Hungary have continued particularly in the energy sector some critics have even accused Hungary of helping Russia circumvent EU sanctions though the Hungarian government strongly denies these allegations in May 2024 Hungary and China elevated their relationship to what they're calling an all-weather comprehensive strategic partnership in diplomacy language it's a way of saying that these two countries are committed to working closely together across a 23:00 wide range of areas regardless of changing circumstances it's a big deal and it signals a level of cooperation that goes beyond normal diplomatic relations one of the most visible aspects of this partnership is hungary's enthusiastic participation in China's belt and Road initiative this massive infrastructure project sometimes called the new Silk Road aims to connect China with Europe and Africa through a network of Roads Railways and Maritime routes Hungary was one of the first European countries to sign up and they've been all in ever since China is financing a 3.8 billion high-speed railway from Budapest to Belgrade a key project in its belt and Road initiative Hungary was among the largest recipients of Chinese brri investment globally in 2022 critics including michos Leti from Transparency International have raised concerns about the lack of oversight on these deals there are arbitrarily designed and swiftly adopted regulations 24:02 by Parliament to prevent any insight or oversight in and over the Russian investment in the nuclear power plant or the Chinese investment into the railway track that is being developed from Belgrade to Budapest these are major investments in the Hungarian context these are unprecedented Investments but it's not just about economics the political aspect of hungary's relationship with China is equally significant Hungary has consistently aligned itself with China on various international issues when other EU countries have criticized China's policies whether it's about human rights Taiwan or Trade Practices Hungary has often been the voice of dissent within the EU this political support hasn't gone unnoticed in Beijing China sees Hungary as a valuable Ally within the EU a country that can potentially influence EU policy in China's favor technology cooperation between Hungary and China is another area that's raising concerns Hungary has been open to working with Chinese 25:04 companies on 5G Network development despite warnings from the US and some EU Partners about potential security risks there's also growing collaboration in areas like artificial intelligence and other emerging Technologies while this could bring economic benefits to Hungary it also raises questions about data security and technological dependence in September 2024 hungary's foreign Minister Peter Sarto made some eyebrow raising statements about bricks he called it an attractive organization and expressed hungary's eagerness to work with the group why is this such a big deal well brics isn't just any International Organization it's a group of major emerging economies that are increasingly challenging the Western dominated Global Order Shi jardo comments about bricks being attractive weren't just casual remarks he specifically compared brics's approach to expansion with that of the EU he praised bricks for being open to 26:01 new members contrasting it with what he described as the eu's reluctance to expand but what's in it for Hungary why is bricks so appealing well there are a few potential benefits first there's the economic angle bricks countries represent huge markets and sources of investment for a country like Hungary looking to diversify its economic Partnerships that's attractive then there's the geopolitical aspect aligning with brics could give Hungary more leverage in its dealings with the EU but it's not just about diplomacy brics has some conrete initiatives that might be appealing to Hungary there's the new development bank for instance this bricks Le institution is an alternative to Western dominated financial institutions like the World Bank Hungary might see opportunities there for financing projects that the EU is reluctant to fund then there's the bricks local currency settlement mechanism and their efforts to create an alternative to the Swift payment system these initiatives aim to reduce dependence on the US dollar and Western 27:05 controlled Financial systems for a country like Hungary looking to maintain its economic sovereignty and navigate between different power blocks these could be attractive options prime minister Justin Trudeau announced Canada would be imposing a tariff on Chinese made electric vehicles as well as on Chinese aluminum and steel China has launched a retaliatory strike against Canada that threatens to devastate one of the country's most vital agricultural exports Canadian canola farmers are bracing for the possible loss of one of their best customers China the impact a political decision on the other side of the world has a direct impact on our bottom line Beijing has launched an investigation into what it calls potentially unfair Trade Practices accusing Canada of dumping cheap canola into the Chinese market this aggressive move comes as a direct response to Canada's recent implementation of 28:00 tariffs on Chinese made electric vehicles and Metal Products well Jus in sure to announced that there will be a 100% tariff on all Chinese made EV EVS or he heavily subsidized ones and as well a 25% tariff on steel and aluminum coming from China now this is a change that's in line with the US that move forward with these tariff hikes in May and since then there have been calls from the industry Ontario's premere and experts to move forward when governments take actions uh to support um certain sectors or industry um there is risk um to exposing others last year Canada exported billion worth of canola to China it's going to be a long and difficult path there is no easy sitcom problem solved before the next commercial break here on October 1st 2024 Canada took the bold and controversial step of imposing tariffs on Chinese made EVS effectively doubling their price in the Canadian Market this measure was swiftly followed by an announcement of a 25% tariff on Chinese 29:06 steel and Aluminum Products set to take effect on October 15 2024 these actions align Canada with its allies the United States and the European Union in their efforts to counter what they perceive as unfair Chinese Trade Practices prime minister Justin Trudeau Justified these measures stating actors like China have chosen to give them V an unfair advantage in the global Marketplace compromising the security of our critical Industries and displacing dedicated Canadian Auto and metal workers so we're taking action to address that the Canadian government's rationale centers on protecting domestic industries from what it sees as China's state-directed policy of over capacity and over Supply as well as concerns over labor and environmental standards in Chinese manufacturing China has become the first nation to sell over 1 million EVS in a single month this Milestone achieved in August underscores China's dominance in 30:03 the global EV Market Chinese automaker byd has now surpassed Tesla in global sales in response to this growth and perceived threat to domestic Industries Canada has imposed a 100% tariff on Chinese made EVS igniting a fierce trade dispute that threatens to reshape the North American Automotive landscape the scope of Canada's tariffs is Broad and far-reaching encompassing a wide range of Chinese made EVS including electric and certain hybrid passenger automobiles trucks buses and delivery Vans it's worth noting that the 100% tariff comes on top of the existing most favored nation import Tariff of 6.1% already applied to EVS produced in China and imported into Canada this move brings Canada in line with the United States which quadrupled its tariffs on Chinese EVS to 100% in May 2024 and the European 31:00 Union which imposed duties of up to 36.3% on Chinese M EVS China's response was Swift targeted and potentially devastating for Canada's agricultural sector on October 2nd 2024 the Chinese Commerce Ministry announced plans to launch an anti-dumping investigation into Canadian canola Imports this move strikes at the heart of Canada's agricultural economy with Canola being a major export crop in 2023 alone Canadian canola exports to China were valued at a staggering 3.47 billion making China the second largest market for Canadian canola after the United States this is now China saying okay you've accused us of this well we're going to accuse you of doing that this was not a surprise to anybody the Chinese Ministry statement was pointed an accusatory claiming that Canadian canola exports to China have increased significantly while prices have continued to fall suggesting that Canadian exporters were suspected of 32:04 dumping products into the Chinese market this language mirrors accusations often leveled by Western countries against Chinese manufacturers turning the tables on Canada in this highstakes trade dispute a spokesperson for China's Commerce Ministry stated that Canada's actions will disrupt the stability of global industrial and Supply chains and seriously undermine economic and trade rules the severity of China's reaction was further underscored by the foreign Ministry spokesperson who declared that China would take all measures necessary to safeguard its economy the potential impact on Canada's canola industry is nothing short of catastrophic a report by Morning Star dbrs an international credit rating agency estimates that the Canadian canola industry could face a devastating $1 billion hit as as a result of China's trade actions this figure becomes even more alarming when compared to the Fallout from a previous 33:04 trade dispute in 2019 which cost the Canadian canola sector between $1.5 billion and $2.4 billion over two years this isn't the first time Beijing has come after the key crop it barred Canadian Imports in 2019 a ban that lasted 3 years the trade restrictions and imprisonment of Michael kov and Michael spavor were seen as retaliation for the arrest of wuwei executive Mong wano the historical context of Canada China canola trade adds another layer of complexity and urgency to the current situation in 2019 China blocked shipments from two major Canadian canola exporters Richardson International and Veta this action widely seen as retaliation for Canada's arrest of Huawei EX itive mang Wan Joo led to a dramatic drop in canola exports from 4.87 million tons in 2018 to just 1.54 34:07 million tons the following year it took until 2023 for sales to bounce back to 4.59 million tons after four years of significantly reduced volumes in 2019 China suspended two Canadian canola exporters before removing the restrictions 3 years later a move seemed likely in response to the arrest of Huawei executive mongan Joe the fact that they are calling this an anti-dumping investigation it's all pre-ordained we know that they will impose a tariff I expect that it will be 100% similar to the Tariff impose on Chinese EV the impact of China's latest move is already being felt acutely by Canadian Farmers Rob Stone a canola farmer near Davidson skatan described the news as devastating adding the markets reacted 35:02 very negatively to the news Stone estimated that the price drop could cost Farmers about $2 per bushel potentially amounting to a staggering $100 per acre he expressed his frustration and helplessness saying the fact that can happen is absolutely enraging but we only do what we can do here on the farm gate talk about those things and share our story about how we're affected Ian Bool president of the agriculture producer Association of Saskatchewan echoed these concerns noting that this latest development adds to an already challenging year for Farmers this year's been every time you turn around the farmers kind of got a little shot in the gut right foxall remarked referencing labor disputes on Railways and at ports as well as drought conditions that have plagued the sector the Canadian government has been quick to defend its actions and reassure the agricultural sector VOR but their words may ring Hollow for Farmers facing potential ruin Deputy Prime Minister and 36:04 Minister of Finance chrisa Freeland stated we are moving in lock step with key International Partners to protect Canadian workers and businesses in our steel and aluminum sectors from China's intentional state-directed policy of overc capacity and over Supply which is undermining Canada's ability to compete in domestic and Global markets Mary Ang minister of export promotion international trade and economic development added China's non-market policies and practices create an unfair playing field for businesses and undermine the success of Canadian workers our government will always defend our national interest and the best interests of Canadians agriculture Minister Lawrence mccaulay emphasized the government's commitment to supporting Canadian Farmers stating our producers depend on and play by a rules-based global trading order that provides reliable Market access today's Ann ment is deeply concerning and I am working with my colleagues across government and in the sector to monitor 37:03 developments closely canid as minister of Agriculture is responding to the move from the Chinese government Lawrence MCCA writes our producers depend on and play by a rules-based global trading order that provides reliable Market access today's announcement is deeply concerning and I am working with my colleagues across government and in the sector to monitor developments closely the quality of Canadian canola is well known around the world we will continue to defend and support the sector every step of the way the situation has sparked intense reactions at the provincial level particularly in western Canada where the agricultural impact is most acute Saskatchewan Premier Scott Mo expressed his province's deep concern over China's anti-dumping investigation the Saskatchewan government went so far as to send a letter to Ottawa urging quick resolution of the issue and reminding the federal government that Saskatchewan Farmers had already be the brunt of chin retaliation in the past referring to 2018 when a 38:01 market access ban on canola led to a decrease of more than 1 billion dollars in exports to China from Saskatchewan well as you kind of talked about this isn't the first trade barrier that we've had to face um in farming we don't get into it for the great hours at the great pay but there a good view uh from our office um this is yeah just one more like pothole on the road um it's definitely going to have a Major Impact possibly more so for my Western counterparts than for myself in Ontario because we thankfully have three Crushers in Eastern Canada one's been on strike all year but hopefully they open again soon but this definitely devastates the price for everybody and and yeah it's just one more away at it um it definitely makes it us concerned uh it's already dropped the price and uh but at the same time Farmers we think like gener optionally right like we're thinking systems so like I have my crop plan for the next few years already planned based on crop 39:03 rotation based on you know helping reduce PES risk work on biodiversity keep my beneficials doing well and just manage our workloads so yeah so we've got spring canola going here and then we're trying some winter canola uh it's a newer crop to Canada and uh we'll be planting it tomorrow if all goes well just so that we can have more crop growing over the winter and spread out again a bit of our risk but uh yeah don't get me wrong I'm glad my off firm income right now

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