Begun the trade wars have
May 5th, 2008Do you ever feel like life is an endless re-run of Star Wars? Maybe not but news comes that Thailand has floated the idea of a rice cartel along the lines if OPEC.
Not surprisingly the Phillipines, the world’s biggest importer of rice, expressed strong reservations saying almost 3 billion people are rice eaters and calling it inhumane. Oh dear.
One can see his point. But the rise in agricultural commodities is giving producers a great opportunity to flex their muscles for a change and they may see it as one to grasp, especially if they happen to be major importers of oil.
This type of proposal will have many importers worried especially if those imports include oil and rice. We know the impact that the formation of OPEC had on the world economy and coming at at time of global financial instability, this proposal can only add to the uncertainty.
Tags: agflation, conflict, food, opec, rationing, rice, trade