Agriculture Concerned with Pending End to Trade Agreement

ST. LOUIS, MO – Last week, agricultural commodity groups sent a letter to U.S. Trade Ambassador Katherine Tai (USTR) and Treasury Secretary Janet Yellen regarding the future of trade with China.

Two years ago, the White House announced an end to the trade war that had brought many agricultural markets to their knees as China suspended purchases of U.S. crops in retaliation for tariffs levied by the Trump Administration in an effort to force the second-largest global economy to reform their unfair trade practices.

The result was the Phase One Economic And Trade Agreement, which requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange. It also includes a commitment by China to make substantial additional purchases of U.S. goods and services in the coming years. Importantly, the agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement.

The agreement, however, is set to end on February 15, 2022, and while groups including the American Soybean Association (ASA) applaud the Biden administration for holding China accountable to its commitments, more work needs to be done.

President Biden and Ambassador Tai have been silent on the future of the agreement and whether the two nations can address additional issues in a Phase Two negotiation.
(SOURCE: All Ag News)