U.S. Commerce Secretary Wilbur Ross Monday suggested the phase one agreement with China doesn’t have to be ready to sign next month. Speaking on Fox Business Network, Ross says, “It has to be the right deal, and it doesn’t have to be in November.”
President Donald Trump has indicated the deal would be ready to sign at the November APEC summit. The agreement includes the intent by China to purchase up to $50 billion worth of U.S. agricultural goods over the next two years.
However, China has said it won’t move forward with significant purchases unless Trump agrees to cancel a planned round of tariff increases set for December. The comments from Ross seem to suggest the phase one agreement may not be as solid as previously portrayed.
Agriculture is described best as cautiously optimistic that the phase one agreement can be completed, and that China massively increases its purchases of U.S. farm products. However, China recently purchased soybeans from Brazil, an uncharacteristic move for this time of year.