The Globe and Mail reports in its Tuesday edition that President Donald Trump is negotiating a potash import agreement with Belarus, a Russian ally, to undercut Canada during the trade war.
The Globe's Adrian Morrow and Kate Helmore write that the deal faces two obstacles. First, getting the fertilizer to the United States won't be easy. Second, the Belarus doesn't have much product to send to the U.S.
The Washington does not typically buy potash in bulk or negotiate prices. Instead, it is imported by private companies and then sold to farmers.
Canadian potash benefits from a well-established network of railways carrying the product from mines in Saskatchewan to buyers in the U.S. Midwest.
Canada is the world's largest potash producer, with Russia and Belarus second and third.
Adding another wrinkle to Mr. Trump's plan is the fact that one of the largest importers of fertilizer into the U.S. is the American unit of Nutrien, which produces more potash than any other company in the world.
The Globe notes that neither the Canadian government nor its fertilizer industry sounded particularly worried about Mr. Trump's threat on Monday.
Canadian exports of potash to China have jumped by 226 per cent in the past year.
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