News

U.S. – China phase-one trade deal behind

A former USDA chief economist says the pace of China’s purchases of U.S. ag goods is slow and likely won’t reach the amount agreed to in the phase-one trade deal. Joe Glauber, now a senior researcher with the International Food Policy Research Institute, said China has only imported about $8.7 billion dollars of U.S. ag goods this year…

“So that leaves a lot,” he said. “I mean, it’s almost $26 Billion needs to be imported by the balance of the year to reach the $36.6 [Billion]. That means a pace that’s three times the pace that we saw in the first six months.”

Glauber said the deal is complicated by the fact that it’s based on the value of imports not volume and with low U.S. prices that can affect the dollar amount. Glauber says while China has been stepping up some purchases it’s unrealistic to believe they’ll reach the goal. He says the key for U.S. agriculture is to grow demand in China.