2020 Could Be Year for Record Agricultural Trade

WASHINGTON, DC – The new year is already promising to hold new twists and turns for trade, particularly as policy debates, presidential politics, and geopolitical issues heighten ahead of the November elections. The U.S.-Mexico-Canada Agreement (USMCA) continues to move toward ratification in the U.S. Congress, having already been approved by Mexico and with Canada set to consider the agreement later in January. If these timelines hold, USMCA could be in force by spring, restoring certainty to the trade relationships with the closest and largest U.S. grains trading partners. In addition, the agreement will serve as a blueprint for future trade agreement negotiations. According to the U.S. Grains Council (USGC), a phase one agreement with China is expected to go into effect before March 1st. The agreement reportedly includes a commitment by China to purchase $40 billion to $50 billion in food and agricultural products over the next two years. China also agreed to provide structural reforms to remove major non-tariff barriers subject to monitoring, review and enforcement mechanisms.