The U.S. Census Bureau recently released new data for the first four months of 2021 regarding trade with China. Data shows China is closing the gap in their purchase goal in the Phase One trade agreement. American Farm Bureau Federation Economist Veronica Nigh summarizes the results.
“The data recently released for April 2021 shows us that while China is behind on their imports relative to the commitments that they had for 2021, purchases are really coming on strong,” she said. “We’re looking right now at exports over $10 billion, achieving about 25 percent of the goal for 2021 which is $40 billion.”
Nigh says China is on track to be the largest purchaser of U.S. ag products.
“Last year, China had pledged to purchase $33 billion in ag products, and they didn’t quite make it. They purchased $27 billion. But still, that was a record for U.S. ag exports. So, looking at 2021, with a commitment of $40 billion, that’s a huge increase in exports for U.S. ag products and would certainly secure China as the largest export destination for U.S. ag products once again.”
Nigh says reaching the lofty goals of the Phase One agreement is still possible.
“Looking at current commodity prices and the purchase commitments for new crop commodities and how much further along in exports we are in 2021, relative to where we were in 2020, it seems China might actually make it this year, at least they stand a chance, that U.S. ag exports might actually achieve this huge goal that was laid out in the Phase One agreement.”
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Source: American Farm Bureau