The phase-one U.S.-China trade deal “is done” and is currently going through a legal scrub, chief U.S. ag trade negotiator Gregg Doud said in an interview with Pro Farmer.
Doud elaborated on expected U.S. ag buys by China, saying the average $40 billion in purchases over two years represents the $24 billion baseline of purchases seen in 2017 plus an additional $16 billion in purchases above that. “Now in the first year, it'll be a little less, and the second year will be a little more,” he noted.
On the U.S. ag products China might purchase, Doud said “I think you're going to see a lot in demand for meat. And China's just extraordinary right now because of the African swine fever thing.”
Though the phase-one U.S.-China deal does not specify China ag purchase levels beyond 2021, Doud said U.S. ag exporters will still see benefits from “structural changes that were negotiated in this deal,” including reduced sanitary and phytosanitary non-tariff trade barriers.
Doud also touted the initial U.S.-Japan trade deal, saying it puts “over 90% of the ag products that we send to Japan” at tariff parity with those from competitors covered under other trade agreements.
Though many rice producers were disappointed in the U.S.-Japan accord, Doud suggested a welcome development could be around the corner. “I've got a huge deal for them that I can't talk about yet here just for another few days,” he said.
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