China has purchased 71% of its Phase One target
The Office of the U.S. Trade Representative (USTR) and the U.S. Department of Agriculture (USDA) issued a report late last week highlighting the progress made to date in implementing the agricultural provisions in the U.S.-China Phase One Economic and Trade Agreement, which is delivering historic results for American agriculture.
Since the Agreement entered into force, the United States and China have addressed a multitude of structural barriers in China that had been impeding exports of U.S. food and agricultural products. To date, China has implemented at least 50 of the 57 technical commitments under the Phase One Agreement.
These structural changes are expected to benefit American farmers for decades to come. China also has substantially ramped up its purchases of U.S. agricultural products. To date, China has purchased over $23 billion in agricultural products, approximately 71% of its target under the Phase One Agreement. Highlights outlined in the report include:
Corn: Outstanding sales of U.S. corn to China are at an all-time high of 8.7 million tons.
Soybeans: U.S. soybeans sales for marketing year 2021 are off to the strongest start in history, with outstanding sales to China double 2017 levels.
Sorghum: U.S. exports of sorghum to China from January to August 2020 totaled $617 million, up from $561 million for the same period in 2017.
Pork: U.S. pork exports to China hit an all-time record in just the first five months of 2020.
Beef: U.S. beef and beef products exports to China through August 2020 are already more than triple the total for 2017.
In addition to these products, USDA expects 2020 sales to China to hit record or near-record levels for numerous other U.S. agricultural products including pet food, alfalfa hay, pecans, peanuts, and prepared foods.
“This China Phase One Agreement is proof President Trump’s negotiating strategy is working. While it took China a long time to realize President Trump was serious, this deal is a huge success for the entire economy. This agreement finally levels the playing field for U.S. agriculture and is a bonanza for America’s farmers, ranchers, and producers,” said U.S. Secretary of Agriculture Sonny Perdue in the release. “Being able to participate in this market in a more fair and equitable way has generated more sales that are supporting higher prices and strengthening the rural economy.”
U.S. Trade Representative Robert Lighthizer said the Trump administration has delivered on its promise to confront China’s unfair trade practices and expand market opportunities for U.S. agriculture through the Phase One Agreement.
"Since the Agreement entered into force eight months ago, we have seen remarkable improvements in our agricultural trade relationship with China, which will benefit our farmers and ranchers for years to come,” Lighthizer said .
USTR and USDA continue to work closely with the Chinese government to ensure that the Phase One Agreement is fully and properly implemented, so that access for U.S. food and agricultural products into the Chinese market can continue to expand moving forward.