YORKTON - In the world of independent business there is a belief that if you work hard you can succeed.
But, there are always outside forces which buffer business efforts.
In agriculture that starts with the whims of ‘Mother Nature’.
But too often it’s also the whims of politicians.
Trade has long been seen as a hammer used to get the upper hand in international disputes which generally have little to do with trade.
Russia invades Ukraine, countries move to restrict trade to send a message – although in the case of the invasion of Ukraine trade sanctions have had little visible impact, although I suppose pro-Ukraine countries can at least believe they did something.
Now we have a situation where Canadian pulse growers – in particular lentil growers – have to be watching the news to see if the growing rift between Canada and India might limit their access to the massive Indian market.
Recently, India’s Chamber of Trade and Industry (CTI) sent a letter to India’s minister of commerce and industry, Shri Piyush Goyal, urging him to ban the import of lentils from Canada, reported
The letter was sent in response to Canadian Prime Minister Justin Trudeau revealing in the House of Commons that Canada is investigating “credible allegations” that India’s Hindu nationalist government was involved in the shooting death of Sikh separatist Hardeep Sing Nijjar in a Vancouver suburb.
While we shouldn’t under play the seriousness of the situation should the ‘credible allegations’ prove accurate, but proving such a thing will no doubt be a protracted procedure.
In the meantime there is a high likelihood that the two countries will be tossing sanctions back-and-forth to prove a point.
If those actions are to recall some embassy staff, or cancel a cricket friendly, it can make a headline without huge impact.
But trade sanctions hurt two groups, both well-removed from the wranglings of national governments. In the case of any sanctions limiting Canadian lentil access to India you have Canadian farmers on this end, and Indian food consumers on the other who could feel the impact.
That trade becomes a hot potato whenever two countries have a tiff, it is disruptive to normal supply / demand trade, and typically is more an annoyance than an effective bargaining chip.
The losers, again are primary agriculture producers and consumers, and neither has the political power to prevent being caught in the middle of such international disputes.
It’s another example of farmers doing their best to produce food efficiently, but having far less ability to manage markets against outside forces.
