For the last several years, global trade has taken a hit in multiple ways.

During the pandemic, many economies experienced shipping delays, labor scarcities, and logistics restrictions. Before that, trade disputes between the U.S. and China put a squeeze on supply chain movement.

And now the Russian war is wreaking further havoc on the global imports mechanism.

In fact, sanctions and shipping setbacks have played a major part in our inflationary economic climate overall. Especially when you factor in the impediments of energy exports, we’re seeing struggles across nearly every market sector from commodities to cryptocurrency.

Nor is the pain set to stop any time soon that I can see.

Just when we thought we may have reached peak inflation potential, a new compounding problem is plaguing our global trade infrastructure. In the wake of all this rising inflation, many countries are now curbing exports in order to quell domestic frustrations over rising inflation.

From The Wall Street Journal:

“Countries around the world have enacted a wave of export curbs on food since the start of the Ukraine war, a trend that economists say risks aggravating shortages and global food-price inflation.

“On nearly every continent, nations have put new restrictions and bans on products ranging from wheat, corn, and edible oils to beans, lentils, and sugar. Lebanon has even banned the export of ice cream and beer.”

Essentially, our global problems have prompted many countries to save their own supplies of essential exports to reduce prices at home. And while this may work in the short term, it rarely works out for long – as many farmers will switch up their crop production to get better prices from a global market.

According to the International Food Policy Research Institute, 26 countries have already restricted staples like beef, corn, rice, soybeans, potatoes, olive oil, and even eggplants. The global implications of these restrictions could easily be calculated by anyone in an economics 101 course.

Worse yet, there’s nothing we can really do about this.

Unlike tariffs, taxes, and sanctions, export restrictions on commodities aren’t covered by the various World Trade Organization commitments.

According to an index published by the Food and Agriculture Organization of the United Nations, global food costs last month were 30% higher than they were in 2021. Meat prices were up 17%, cereals and grains were up 34%, and edible oil prices were 46% higher.

And, knowing full that these numbers could intensify as inflation rises throughout the world, it’s looking more and more like every country for itself. 

More Non-REIT News to Know About

In my coverage of the $44 billion Twitter (TWTR) takeover, I’ve reported on Elon’s purchase decision, the backlash it sparked, and the subsequent (though murky) legal fallout in terms of NDA violations.

But today, the spotlight, it seems, is on the OG of the Twittersphere – founder Jack Dorsey.

Effective as of yesterday, Dorsey tendered his resignation from Twitter’s board of directors. Many people predicted that move last fall when he stepped down as CEO, but still…

Talk about timing.

Dorsey is a good friend of Elon’s and has even encouraged the eccentric billionaire on his quest to take over the social media platform. Whether this last move was made to recuse himself against the outcome of Elon’s occupation, we cannot be certain.

In a tweet last month, Dorsey explained:

“Elon’s goal of creating a platform that is ‘maximally trusted and broadly inclusive’ is the right one. This is also @paraga’s goal, and why I chose him. Thank you both for getting the company out of an impossible situation. This is the right path… I believe it with all my heart.”

No matter how you interpret that, I guess this is goodbye for the last Twitter founder with any official influence on the company. A new day is on the horizon, whatever it might bring.

The World According to REITs 

 Canada-based Dream Industrial Real Estate Investment Trust (DIR.UN) just released an update on environmental procedures to usher in a net-zero initiative across the entirety of its property portfolio.

 Within this, it’s established a Green Lease Program that includes commitments to:

• Tenant energy disclosures
• Responsible construction practices
• On-site renewable energy sources
• Tenant training and cost recovery clauses for energy efficiency upgrades

Recently, the U.S. Department of Energy’s Better Buildings Alliance recognized the REIT with

Gold Level status as part of its Green Lease Leaders program.

Here’s what the company wrote:

“‘We are pleased to be recognized by GLL for our significant efforts in driving sustainability initiatives across our portfolio,’ said Alexander Sannikov, chief operating officer of Dream Industrial REIT. ‘We continue to incorporate sustainability into our investment decision-making, which allows us to further enhance the quality of our portfolio and business.’”

As the real estate environment becomes ever more independent from non-renewables, these immediate actions will have great impacts on your long-term investments. Sure, it may cost something in the short term. But with the advances in energy-efficient solutions, there’s never been a better time to build, lease, and operate responsibly.