By: admin On: September 14, 2021 In: Uncategorized Comments: 0

The FT article stated that “the agreement allows most of the US tariffs on $360 billion of Chinese goods to come into force, while avoiding for the time being the risk of further escalation. However, the agreement provides for an enforcement mechanism that would allow the US to revive its tariff threat if China is found to be a breach of its obligations. “At this particularly difficult time, rural America needs one of its largest potential export markets for food and agricultural products,” 192 groups representing agriculture, rural economic development and business interests said in a flattering letter to President Donald Trump last month, in which they were optimistic about “accelerating the deal and achieving the deal by China.” Washington, DC – The Office of the U.S. Trade Representative (USTR) and the U.S. Department of Agriculture (USDA) today released a report highlighting the progress made so far in implementing the agricultural provisions of the U.S.-China Phase One Economic and Trade Agreement, which is producing historic results for U.S. agriculture. “Meeting the deal at this late stage of the year will be difficult, but not impossible,” Peter Meyer, an analyst at S&P Global Platts, said in an email. “It seems that the U.S. government has resigned itself to the possibility that the agreement will not be concluded.” While China has increased its purchases of agricultural goods since the trade deal went into effect in February, it is also a seasonal buyer of soybeans and generally buys more in the last quarter of the year. Whether in agriculture, industrial products or energy, neither country is on track to meet its obligations under the Phase One agreement signed six months ago. Then, as soon as the agreement entered into force a month later, the pandemic spread and reduced demand for many agricultural products.

Hit by a two-year trade war followed by a disappointing trade deal – at least so far – and then a global pandemic, there aren`t many farmers or rural communities currently feeling concise. Worried farmers and business groups are pushing the U.S. and China to meet their obligations under the first phase of the trade deal, even as the coronavirus shakes up its assumptions. NEW YORK — Seven months after the United States and China signed a tentative agreement to moderate their trade war, Beijing`s purchases of U.S. agricultural goods have yet to meet the agreement`s goal. “This Phase 1 deal from China is proof that President Trump`s negotiating strategy is working. While China has been slow to realize that President Trump is serious, this deal is a great success for the entire economy. This agreement finally opens up the conditions of competition for U.S. agriculture and is a gold mine for U.S.

farmers, ranchers and producers,” said U.S. Secretary of Agriculture Sonny Perdue. “The opportunity to participate in this market in a fairer and more equitable way has more sales that support higher prices and strengthen the rural economy.” “In an agreement signed Wednesday at the White House, China pledged to import at least $12.5 billion more in agricultural goods this year than in 2017 and increase to $19.5 billion next year,” Bloomberg author Michael Hirtzer said Wednesday. China will also “strive” to buy an additional US$5 billion a year in agricultural products. This could bring next year`s total purchases to the $50 billion mark. “U.S. soybean sales for the upcoming crop are at a very high level for this time of year, which is encouraging,” said Meyer of S&P Global Platts. “How much longer China buys soybeans from the U.S. before moving on to Brazilian deliveries will depend more on the quality of the soybeans harvested this year than on any kind of trade deal.” “Since the agreement came into force eight months ago, we have seen noticeable improvements in our agricultural trade relationship with China, which will benefit our farmers and ranchers in the years to come,” the United States said.

. . .

Trackback URL: http://timothyallard.com/2021/09/14/china-agricultural-agreement/trackback/