USMCA and China Agreements Pt 2
I’m Bob Larson. House passage of the USMCA is good news, but there also appears to be movement in talks with China.
The back-and-forth began when President Trump gave reason for cautious optimism back in October …
TRUMP … “We’ve come to a deal, pretty much, subject to getting it written.”
Before the holiday break, U.S. Representative Dan Newhouse said a deal with China is a must …
NEWHOUSE … “That is critical. We’ve got to do that. It’s probably the hardest of all the trade agreements, but you know, it’s like we take one step forward and two steps back sometimes when you talk about negotiations and how they’re going.”
Newhouse says Phase One of the deal appears to be close …
NEWHOUSE … “And, now that some of these other things are getting checked and we can move forward and fully focus on getting this Chinese deal done.”
Not many details are yet known about Phase One, but USDA Chief Economist Rob Johansson says China is on the hook for more Ag products …
JOHANSSON … “As much as $80-billion of purchases by China over the next two years, on average, $40-billion a
year.”
Johansson says it should be doable …
JOHANSSON … “In previous years, China has purchased almost $25-billion from us so they’re committing to purchase that $25-billion plus an additional $15-billion in each of the next two years, totaling $80-billion in purchases.”
Word is China has agreed on a reduction of tariffs on U.S. goods and structural changes in how it deals with U.S. imports.
