China Has Made Progress In Fulfilling The Trade Agreement With The US

China Has Made Progress In Fulfilling The Trade Agreement With The US

China has made progress in fulfilling key parts of the "first phase" of the trade agreement with the US, signed by both sides earlier this year. The US Trade Representative's Office (USTR) and the Department of Agriculture said this on Friday night. The Asian country has significantly increased its purchases of US agricultural products and made 50 of the 57 technical commitments aimed at reducing structural barriers to US imports. The USTR and the Department of Agriculture said in a joint statement that China had already purchased US agricultural products worth $ 23 billion (€ 19.40 billion), representing about 71 percent of the target level set in the first phase of the agreement. "Since the agreement came into force eight months ago, we have seen a remarkable improvement in our trade relations with China, which will benefit our farmers in the years to come," said Robert Lighthizer, a US sales representative.

The report showed a positive development

The first phase of the agreement eased the trade conflict between the world's two largest economies, but human rights and technology disputes, as well as the COVID-19 crisis, once again disrupted relations between Washington and Beijing. This raises doubts about the prospects for reaching the second phase of the agreement. Agriculture is one of four areas where China has committed itself to increasing purchases of American goods and services. Many experts question whether China will meet its targets this year in the wake of the pandemic blockades. However, the report showed that US corn sales to China reached an all-time high of 8.7 million tonnes, while contracts for US soybeans sales in the 2021 fiscal year are twice as high as in 2017. The value of US sorghum exports to China from January to August 2020 also rose to USD 617 million from USD 561 million in the same period of 2017.

Americans expect new records

Exports of pork from the USA to China reached a record only in the first five months of 2020, while exports of beef and beef products until August 2020 were more than three times higher than in 2017. In addition to these products, the Washington Department of Agriculture expects sales of other U.S. agricultural products, including pet food, hay, pecans, peanuts, and ready-made meals, to set new records.