October 5, 2020

US Agriculture Secretary: Uncertain if China will meet Phase 1 agricultural commitment

Sonny Perdue, United States Department of Agriculture Secretary said China may not meet its agricultural purchase pledge in the US - China Phase 1 agreement due to non-agricultural trade issues, Reuters reported.

In a town hall meeting with Edge Dairy Farmer Cooperative farmers, he said he was unsure if China could fulfill its commitment because "non-agricultural trade issues get in the way" but said they are trying.

In the US – China Phase 1 trade deal signed earlier this year, China pledged to purchase US$36.5 billion in US agricultural goods, but there is doubt that China could increase imports by more than 50% over 2017 numbers after due to its lower than expected purchases by July this year.

What non-agricultural trade issues Purdue said were unclear.

China imported only US$8.6 billion worth of US agricultural goods between the start of this year to July, based on US Census trade data.

According to preliminary US Department of Agriculture data, China has ramped up its purchases of US agricultural goods between August and September, including about 12 million tonnes of soybeans and 4 million tonnes of corn.

-      Reuters