Odds May Be Declining For US Purchases of Ag Goods To Donate

The tweet by President Donald Trump that the U.S. may buy up commodities and donate them is appearing to be waning as a possibility. U.S. law requires an analysis of whether the receiving country would be able to store the inbound foodstuffs, to prevent them from rotting, and for the U.S. to assess whether the aid would undermine local farmers, according to a report by the Congressional Research Service. Expectations are that other exporting countries would likely raise objections to any program as export subsidies, which are banned under World Trade Organization rules. President Trump said on Monday that his administration was planning to provide about $15 billion in aid to help U.S. farmers whose products may be targeted with tariffs by China in a deepening trade war. "We are going to take the highest year, the biggest purchase that China has ever made with our farmers, which is about $15 billion, and do something reciprocal to our farmers so our farmers can do well," Trump told reporters at the White House.