China Trade

China Trade

David Sparks Ph.D.
David Sparks Ph.D.
As part of the Phase 1 Economic And Trade Agreement between the U.S. and China, the Chinese agreed to purchase no less than $12.5 billion in U.S. agricultural products during calendar year 2020 and no less than $19.5 billion worth of U.S. farm and ranch goods in calendar year 2021, on top of a 2017 baseline amount anecdotally expected to be $24 billion. The baseline is to be applied to both years.

Combined, during the first two years China was expected to make agricultural purchases totaling $80 billion and additional purchases across manufacturing, energy and services of $120 billion (China: What Does it Mean Now?). The trajectory of these purchases was expected to continue through 2025.

China and the U.S. also made progress on a regionalization agreement related to animal diseases, acceptance of commonly used beef hormones and expanded market access into China for U.S. beef (USDA and USTR Announce Continued Progress on Implementation of U.S.-China Phase One Agreement). Reducing these non-tariff barriers are important not only to facilitate the Phase 1 purchase commitments of $80 billion but also to ensure U.S. agriculture has more fair and meaningful access to the Chinese market in the years and decades to come.

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