China has purchased about 71 percent of the intended U.S. ag goods set out in the Phase 1 trade deal
By Diego Flammini
China is making good on some of its ag purchase commitments set out in a trade deal with the United States, a new report says.
As of Oct. 23, China has bought $23.6 billion in U.S. agricultural products, the Interim Report on the Economic and Trade Agreement between the U.S. and China says.
That figure amounts to about 71 percent of China’s intended ag purchases set out in the Phase 1 agreement representatives from the two countries signed in January.
The trade deal went into effect on Feb. 14, meaning March is the first full month the agreement was in place.
To meet its total purchase amount, China would have to buy approximately another $12.7 billion of U.S. ag products by February 2021.
In addition, China has implemented 50 of its 57 technical requirements, removing multiple trade barriers for U.S. exporters.
“This agreement finally levels the playing field for U.S. agriculture and is a bonanza for America’s farmers, ranchers and producers,” Agriculture Secretary Sonny Perdue said in a statement. “Being able to participate in this market in a more fair and equitable way has generated more sales that are supporting higher prices and strengthening the rural economy.”
Farms.com has contacted multiple industry groups to gather their perspectives on China’s ag trade commitments.