U.S. Trade Representative chief ag negotiator Gregg Doud told members of the National Association of Wheat Growers and U.S. Wheat Associates that the phrase of market terms links to seasonality.
“We do not expect China to buy U.S. soybeans in the middle of the Brazilian harvest. That is what that term means,” Doud observed. “The expectation is they have a commitment to make. We expect them to make that, when it is our time.”
He also noted the enforcement mechanism in the deal. “Either country has the right to put tariffs on, commensurate with the value of whatever the problem is,” he remarked.
Doud added that when and if that were to take place, an important part is that “the other side cannot retaliate. The goal is not to have that happen — and I will tell you, that’s very sincere on both sides.”
Regarding timing, Doud indicated that 60 days appears to be a key figure in the timelines relative to when U.S. ag exports could start materializing.
“China enters into force in 30 days. And the beef component of that we supposed to have in another 30 days, so that is 60 days,” Doud said. “Then you think about it in terms of what we just did in poultry. We reopened the poultry market in the middle of November.” The poultry landed in China January 14, he noted, “so that is roughly 60 days.”
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