The “Phase One” trade agreement with China recently expired, and “Our Chinese friends are about $16 billion light over what they committed to purchase,” says Ag Secretary Tom Vilsack.
He’s referring to China’s commitment to purchase at least $40 billion in ag goods per year as part of the agreement. He believes further consultations between negotiators will take place to ensure enforcement of that purchase agreement as well as sanitary and phytosanitary barriers China agreed to remove under Phase One.
“Whether that’s ractopamine in pork, hormones in beef, ethanol, tariffs, or the ability to purchase more DDGs, we’re going to continue to press China on the need for complete enforcement and complete implementation of this trade agreement before we begin the process of discussing the possibility of extensions.”
While speaking at the Farm Bureau convention in Atlanta last weekend, Vilsack did mention the possibility of China making up the $16 billion deficit over the course of the next several years.
Source: USDA Radio Newsline