The China coronavirus situation is expected to result in the U.S. and China undergoing consultations under the phase-one trade deal relative to purchase commitments of U.S. ag and other products under the deal.
Recall consultations are called for if either party faces a delay in their purchase commitments for reasons outside of their control.
Most observers expect consultations will be held between the two countries, if they have not yet been via phone/video conference. Some expect delays in purchases/shipments of one to two quarters, with the seasonality of China’s buys of U.S. ag goods potentially impacted if the purchase timeline goes beyond that in terms of any delay.
It is possible that with enough supply chain disruption China will not be able to meet the schedule for phase-one purchasing commitments.
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