President Donald Trump and Chinese Vice Premier Liu He signed the Phase One trade agreement at the White House Wednesday, flanked by more than 200 in attendance that represented several sectors of the U.S. economy that should see benefits from the trade deal.
The purchase commitments of U.S. ag products in the agreement are for a two-year total of $80 billion. That comes from purchases of $12.5 billion beyond a $24 billion base period for $36.5 billion in 2020 and $19.5 billion beyond the $24 billion base period for $43.5 billion in 2021.
The package also addresses issues in China such as their operation of their tariff-rate quotas (TRQs) for wheat, corn and rice. The U.S. successfully challenged China’s operation of the TRQs at the WTO as the country has not filled those for the commodities in question. The TRQs were part of China’s commitments when the joined the WTO.
The agreement also calls on China to set maximum limits on residues for three growth hormones used in beef production and removes the age limit on animals that U.S. beef can come from to ship to China.
The agreement also has China committing to a specific timeline for approving new GMO products and has other biotechnology-related provisions aimed at preventing future trade issues.
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