February 6, 2020

US Agriculture Secretary said country needs to be tolerant if coronavirus affects China's trade deal pledges

Commodity traders and agricultural economists doubt that China will fulfil its US-China trade deal pledges of US$36.5 billion agricultural goods this year as the coronavirus affects China's economy, reported Reuters.

Sonny Perdue, the US Agriculture Secretary said trade negotiators could not have foreseen the coronavirus outbreak, though the trade deal does include a disaster clause to allow for delays.

Perdue was not part of the negotiation team and did not mention how the United States will adapt its expectations.

However, traders and economists have doubted China's pledge to fulfil its part of the trade deal before the coronavirus outbreak, largely due to the African swine fever reducing China's need for soy as livestock feed and Brazil's increased soybean harvest.

Bill Lapp, economist and president of Advanced Economic Solutions from Nebraska said the virus has given China an opportunity to escape the trade deal promises.

Larry Kudlow, White House economic adviser said the coronavirus outbreak will delay US exports to China resulting from the trade deal.

-      Reuters