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A major reappraisal of the U.S.-China trade relationship may have begun in the supplements aisle of your local health food store. The U.S. Supreme Court’s unanimous decision in Animal Science Products Inc. v. Hebei Welcome Pharmaceutical Co. 138 S. Ct. 1865 (2018) settled an international dispute spanning more than a decade over the sale of vitamin C supplements and the procedures for interpreting foreign law in U.S. federal courts.
Read MoreThe logic behind this decisive stance by the Court can be applied to Amazon and its intended purchase of Whole Foods. There is no doubt that in a few years time, Amazon will strategize and use its position in the physical grocery business to severely undercut rivals – especially those in the upscale food business. But even if Amazon decides to sell groceries below-cost, that would not constitute clear proof that it is creating an uncompetitive market for groceries. In an industry whose margins are already razor-thin, Amazon could claim that prices would only improve for consumers.
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