China's purchases of U.S. ag products is expected to pick up steam this fall, according to Michael Nemelka, nominee to be a deputy U.S. Trade Representative (USTR).
“We have the Phase One agreement, which also just entered into force a few months ago,” Nemelka told the Senate Finance Committee in his nomination hearing. “In that remarkable agreement, USTR achieved many long-held goals, including a commitment from China to fully respect intellectual property rights, end forced technology transfer, and increase purchases of U.S. goods and products, among many other things.”
A key is making sure that China meets its commitments, he noted in prepared remarks, “and we have an agreement that is in writing, and is fully enforceable, to make sure they do.” On making sure that China will live up to its purchase commitments, Senate Finance Committee Chairman Chuck Grassley, R-Iowa, asked Nemelka to address how USTR is working to make sure that China meets those commitments. Officials at USTR are working “every day to make sure that China lives up to its commitments,” Nemelka said. “We have our ambassador Gregg Doud on the phone nearly every day” with his counterparts in China.
In the fall, he added, the expectation is that “with these seasonal products and soybeans in particular that are currently in the ground, we expect to see those purchases rapidly increase.”
Nemelka's view matches that of USTR Robert Lighthizer and other U.S. trade officials who have indicated their China purchases will increase and that China remains committed to meeting the terms of the deal.