Chinese Ag Purchases Under Phase One Agreement Lagging

WASHINGTON, DC – Following another big week of commodity purchases from China, a recurring question by U.S. farmers and farm groups is whether these exports will, in fact, add up to their commitments. On February 14 the two countries implemented a Phase One Economic and Trade Agreement, where the Chinese agreed to purchase no less than $63.9 billion in covered goods from the United States by the end of 2020. Of these purchases, it is implied that China will buy $26.6 billion in agricultural products. According to the Peterson Institute for International Economics, Chinese imports were $9.9 billion compared to a year-to-date target of $21.3 billion or 46 percent of the agreed commitment. Though the Institute prorates the year-end targets, they quickly note that nothing in the agreement indicates that China must meet anything other than the year-end targets.
(SOURCE: All Ag News)