- sanitary and phytosanitary (SPS) standards and other non-tariff barriers to trade – beneficial provisions that finalize agreements pursued by a number of past U.S. administrations and should help boost U.S. agricultural exports to China over the long-term.
- more protection for the intellectual property of U.S. companies and the end of a requirement of American businesses to share their technology as a cost of doing business with China – critically important.
- promises by China to increase imports from the U.S. – to increase purchases of U.S. agricultural products by $32 billion in the next two years ($80 billion worth of American farm goods). To meet this target, U.S. soybeans, pork, meats, cotton and dairy products will need to be on China’s shopping list.
Farmers and Ranchers Face Harsh Reality Check after the Phase-one China Trade Agreement
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Reading Time: 2 minutesUSDA Secretary Perdue called the January 15, 2020 pact a “bonanza” for U.S. ag, but it could be a while before farmers reap its benefits. According to Maxson Irsik, K·Coe Isom advisor, “It may be months or even years before American farmers and ranchers see increased exports to the Asian nation.” While the first phase trade agreement with China is welcome news for ag producers, it provides little in the way of ‘guarantees’ or immediate benefits. The Pros Ag provision highlights included: