WASHINGTON, DC – With just over five months remaining in the Phase One Trade Agreement between the United States and China, the Peterson Institute for International Economics says the negotiated purchase of agricultural products from American producers is under the commitment made by the Chinese.
The agreement, signed on February 14, 2020, outlines China’s agreement to expand purchases by a combined $200 billion above 2017 baseline levels over the two-year period.
Through July, however, China’s total imports of covered products from the United States were $78.9 billion, compared with a year-to-date target of $114.1 billion, or 69 percent of the goal.
For agriculture specifically, China committed to an additional $19.5 billion of purchases in 2021 above 2017 levels, implying an annual commitment of $43.6 billion.
Through July though, China’s imports totaled $23.2 billion, compared with a year-to-date target of $25.9 billion, equal to 89 percent of the Phase One commitment.
One question is whether the Chinese can reach the agreed level of purchases before the trade pact ends, while another is whether the U.S. is working behind the scenes to either expand the term for another two years or more and whether the Biden Administration will have a Chief Ag Negotiator nominated to lead the discussions before the agreement ends on February 15, 2022.
(SOURCE: All Ag News)