China & U.S. "Phase One" Trade Agreement Good for Agriculture

Last week was a big week for U.S. farmers and ranchers in the area of trade. Following the deal reached earlier this week between House Democrats and the White House on USMCA, on Thursday, President Trump signed off on the “Phase One” trade deal China.

In addition to a significant increase in Chinese agricultural purchases, officials also say the phase-one pact would include commitments from China to do more to stop intellectual property theft, something the Trump administration has been pushing for.

The agreement between the worlds’ two largest economies averts the December 15th introduction of a new wave of U.S. tariffs on $160 billion in Chinese goods. And sources say the deal does include a promise from China to buy more U.S. agricultural products.

Agriculture Secretary Sonny Perdue says the announcement is another win for U.S. farmers and ranchers.

“Well, I know the numbers that have been discussed really is in the $40 to 50 billion range” said Perdue. “When you think about the scale, that's double what's ever happened before. So that is a significant number. It will be a real bonanza if we can trust China to do what they say they'll do. It's easy to sometimes to talk but to implement back is really what part of a lot of this discussion has been about.”