News is breaking late Friday afternoon. President Trump is announcing of a Phase 1 agreement between the U.S. and China concerning trade. Trump says the Chinese will buy between $40 billion to $50 billion in U.S. agricultural goods.
“Trump openly wondered and kind of kidded whether or not farmers will be able to deliver up to $50 billion in [agricultural] purchases eventually on an annual basis,” said Jim Wiesemeyer, a Farm Journal Washington Correspondent. “At the peak, we were at about $16 billion. We are at about $8 billion right now. At the low point, we were at $2 billion when all of those sanctions were put on.”
The agreement also includes language of structural agricultural issues, phytosanitary issues and biotechnology.
“When you look at this and it’s fulfilled, this would honestly be very good news under a host of American products,” said Jim Wiesemeyer.
The measure reportedly includes an agreement which includes 30 MMT of soybeans and an unspecified amount of pork, intellectual property provisions, an agreement on currency and foreign exchange issues and structural ag issues. Wiesemeyer says he won’t be surprised if sorghum, wheat and other agricultural products are included.
“We’re going to be checking in to whether [China is] going to lift some of their restrictions on the imports of U.S. ethanol,” said Wiesemeyer.
The agreement still needs to be put on paper. It’s unknown how many phases there will be in the agreement. Wiesemeyer says the deal may be signed at the APEC talks which will be attended by President Trump and Chinese President Xi Jinping mid-November.