Phase One Agreement With China Boosts US Exports

The latest trade numbers show strong U.S. agricultural exports despite transportation challenges.

Trade data shows U.S. exports are up this year with a significant increase in exports to China. American Farm Bureau Federation Senior Economist Veronica Nigh shares the details.

“We’re in the second year of our two-year Phase One commitment with China, which committed China to purchasing certain dollar values of U.S. agricultural products. So, thus far in 2021, January through August, we’ve exported nearly $18 billion of U.S. ag products.”

Nigh says China is not far from the pace needed to reach the Phase One commitments.

“We believe the cumulative exports to China needs to be about $20 billion, at this point, in January through August. So, that means they’re only 12 percent behind where they need to be in order to reach the 2021 total value.”

Nigh says U.S. 2021 exports are strong despite transportation challenges in the United States.

“On the west coast we have port congestion. In the Gulf, they’re still recovering from Hurricane Ida. And so far, in 2021, the U.S. has exported over $115 billion in U.S. agricultural exports, of which almost 16 percent of that has been going to China. U.S. ag exports are up 28 percent compared to the same time period in 2020. Exports to China are up almost 120 percent.”

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