Wednesday, 03 June 2020
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U.S.-China Reach "Phase One" Deal

Last Friday, President Trump announced the United States and China have reached “Phase One” of a several part bilateral deal focusing on access for U.S. agricultural goods. The President observed the deal will include $40-$50 billion in annual agriculture purchases. This would be more than double U.S. record sales and triple U.S. average agricultural sales as compared to before the U.S.-Sino trade dispute began. However, Chinese officials indicate the purchases will not occur until the deal is signed with the signing expected to occur on the sidelines of a November 16-17 APEC meeting in Chile.

"The final goal of both sides' negotiations is to end the trade war and cancel all additional tariffs," Chinese Ministry of Commerce spokesman Gao Feng said. "This would benefit China, the U.S. and the whole world. We hope that both sides will continue to work together, advance negotiations, and reach a phased agreement as soon as possible.” You may hear the President’s comments about the deal as it relates to agriculture from his speech in Dallas, Texas here. You may read industry analysis from ProFarmer here. NSP continues to work closely with USTR and USDA to secure strong sorghum and ethanol commitment as a part of the final package.  

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