President Trump signs Phase One Trade Agreement between US, China

On Jan. 15, President Donald J. Trump signed the historic Phase One Trade Agreement between the United States and China.

U.S. Secretary of Agriculture Perdue said the agreement is proof Trump’s negotiating strategy is working.

“While it took China a long time to realize President Trump was serious, this China Phase One deal is a huge success for the entire economy,” Perdue said. “This agreement finally levels the playing field for U.S. agriculture and will be a bonanza for America’s farmers, ranchers and producers.

Perdue said China hasn’t played by the rules for far too long and he thanked the president for standing up to their unfair trading practices and putting America first.

“We look forward to exporting to Chinese customers hungry for American products,” Perdue said.

The Phase One deal 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. The agreement also includes a commitment by China that it will make substantial additional purchases of U.S. goods and services in the coming years. The agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement. The U.S. has agreed to modify its Section 301 tariff actions in a significant way.

According to documents released by the White House outlining details of the deal, China’s imports of U.S. agricultural products, “such as soybeans, cotton, grains, meats, ethanol, seafood and the full range of other agricultural products,” will total at least $80 billion over the next two years.

A number of groups issued statements following the signing.

U.S. Soybean Export Council

Jim Sutter, USSEC CEO issued the following statement:

“We welcome the news that the United States and China have signed a Phase One trade deal. With planting season coming up, this agreement has the potential to provide relief for our farmers who have battled through more than a year of market uncertainty. The deal includes commitments by China to substantially increase imports of soybeans and our farmers are ready to meet this demand while also maintaining our efforts to deliver U.S. soy products in other key regions. As the U.S. and China continue talks toward a long-term resolution, we will stay focused on our mission to identify and build strong relationships with customers worldwide.”

American Soybean Association

Bill Gordon, soy farmer from Worthington, Minnesota, and ASA president, issued the following statement:

“We have long supported changes to how China conducts business with the world, in agriculture and other industries. Today’s signing addresses many of those concerns and is a positive for the U.S., including reduction of non-tariff barriers to trade that are important to soybean growers and other agriculture groups.”

“We are very pleased to see true progress on the regulatory process for ag biotech products, sanitary and phytosanitary measures, and other big points of concern. And, importantly, this milestone moment in the negotiation process bodes well for de-escalation of the tension between our two countries and making further progress,” Gordon commented, “Yet, as an industry, we have a lingering unease regarding the tariff on U.S. beans, which was not addressed in this deal. China needs to take action, and, as a goodwill gesture, offer to remove its retaliatory tax on our soybeans.”

U.S. Wheat Associates/National Association of Wheat Growers

Vince Peterson, president USW:

“Even though China has huge domestic wheat stocks, they were buying more U.S. wheat because they needed it to meet growing demand for higher quality wheat foods,” Peterson said. “The losses we demonstrated soon after China stopped importing U.S. wheat have only grown since then, so we hope the agreement signed today signals a potential turn-around.”

“Our organization and the farmers we represent agree with the Trump administration that China has not been transparent about its protectionist policies,” Peterson said. “Now it remains to be seen if China will comply fully with its WTO commitments and this new agreement so that trade between our two countries can flourish.”

NAWG CEO Chandler Goule:

“Wheat farmers have experienced the harm of unfair trading practices at the hands of China for far too long, as reinforced by the recent WTO wins. This step forward in negotiations between the U.S and China is a tremendous way to begin the new year,”

National Sorghum Producers

Chairman Dan Atkisson, a sorghum farmer from Stockton, Kansas, issued the following statement:

“National Sorghum Producers was pleased to be a part of the signing today of a Phase One deal with China and applauds both the U.S. and Chinese administrations for their hard work to progress negotiations and reach an agreement that should lessen market uncertainty and shift purchases to more U.S. agriculture products, like sorghum, by our customers in China. Our farmers, as well as Chinese consumers, will benefit from this agreement.

“We anticipate fully analyzing the terms of the deal, but as for what we understand today, it offers more opportunities for our growers to once again become competitive in the Chinese market and to regain relationships with our customers there. We know we have the sorghum to sell, and we know our customers in China want our product. Therefore, we look forward to re-establishing business at the shipment levels we saw before this process began.”

National Corn Growers Association

NCGA President Kevin Ross made the following statement:

“Signing the Phase One agreement with China is a step in the right direction to resolving the trade dispute with China and restoring the trading relationship between our two countries. China holds tremendous opportunity for American corn, ethanol and DDGs and NCGA looks forward to learning further details of what phase one will mean for these products. As more specifics become available, we will closely monitor implementation to ensure that the commitments are upheld and that U.S. corn farmers resume trading with Chinese customers. NCGA urges the administration to quickly commence phase two negotiations and work to resolve retaliatory tariffs.”

National Cotton Council

NCC Chairman Mike Tate, an Alabama cotton producer, issued the following statement:

“While we welcome Phase One and are hopeful about the potential for future increased sales to China, U.S. cotton producers continue to face a challenging economic climate. As such, we encourage President Trump and USDA to follow through with the third tranche of MFP payments as quickly as possible.”

“Since the middle of 2018, the ongoing trade dispute between the United States and China has been front and center in any discussion of the cotton market,” Tate said. “Cotton prices remain well below pre-dispute levels due to China’s imposition of a 25 percent retaliatory tariff. That’s why removal of these tariffs should be a high priority for any upcoming dialogue between the two countries.”

National Cattlemen’s Beef Association

NCBA President Jennifer Houston issued the following statement:

“The Phase One agreement with China will be a game changer for the U.S. beef industry. For many years, Chinese consumers have been denied access to high-quality U.S. beef—the same U.S. beef we feed to our families. Non-scientific trade barriers like the ban on production technologies, the extensive traceability requirements, and the 30-month BSE restriction have greatly limited our ability to tap into growing beef demand in China. The removal of these massive trade barriers gives Chinese consumers access to the U.S. beef they desire, and it gives America’s cattlemen and cattlewomen the opportunity to provide U.S. beef to a growing consumer-base that represents one-fifth of the global population and a middle-class that is greater than the entire U.S. population.”

“We cannot begin to express our thanks to President Trump for fighting for America’s cattle producers,” Houston continued. “Restoring U.S. beef access to China was the top agenda item resulting from the Mar-a-Lago summit in 2017, and our negotiators have never stopped working to reopen the Chinese market for U.S. beef. The Trump administration did not allow the odds to dictate the outcome, and because of their hard work and dedication, America’s cattle producers and Chinese consumers will have a stronger relationship that will benefit both countries for generations. Today is a great day for the U.S. beef industry and the National Cattlemen’s Beef Association.”

Texas and Southwestern Cattle Raisers Association

Robert McKnight, Jr., president TSCRA, issued the following statement:

“After a 14-year absence, U.S. beef was finally reintroduced to the Chinese market in 2017. Despite this, non-tariff barriers continued to hinder sales of American beef to China,” said McKnight. “The signing of today’s trade agreement is a significant step toward removing those restrictions and will allow U.S. beef producers to be much more competitive in the market.”

“In 2018, China imported more than $4 billion in beef and beef products. If the U.S. were to come anywhere close to regaining the 70% market share we enjoyed before 2003, it would be a tremendous boon for American cattle producers.”

“Once again, we owe a tremendous thank you to the administration for their work on behalf of cattle producers.”

Iowa Secretary of Agriculture

Iowa Secretary of Agriculture Mike Naig issued the following statement:

“The signing of the phase one U.S.-China trade agreement is great news for Iowa farmers,” said Secretary Naig. “It signals that both sides recognize the value of the trading relationship and are willing to continue working to secure a long-term deal. This is the progress we need to regain U.S. agricultural exports to China. I want to thank the Trump Administration for continuing to fight for access to this important market.”

GOP lawmakers commend pact

House Agriculture Committee Ranking Member K. Michael Conaway released the following statement:

“In January of 2017, few believed that President Trump could successfully renegotiate NAFTA or new trade terms with China. Even fewer believed that any changes made would eliminate the unfair trading practices of our trading partners in North America or the predatory trading practices of China that have long injured the United States.”

“Those critics have no ground to stand on today. The President has negotiated the United States-Mexico-Canada Agreement to preserve and expand access for America’s farmers and ranchers to vital Canadian and Mexican markets, and has now signed Phase One of a U.S.-China agreement that begins a longer process of finally holding China accountable to its trade commitments and to principles of truly free and fair trade.”

Congressman Roger Marshall, M.D., R-KS, a member of the House Agriculture Committee, issued a statement in response to the signing:

“This agreement today represents an enormous victory for Kansas agriculture producers and manufacturers. This is yet another promise kept by our President that will continue to improve the lives of all Americans,” said Dr. Marshall. “Our farmers and ranchers have borne the brunt of the effects from this trade battle, and I am happy to say that things will get better soon. President Trump’s efforts to solidify deals with our four largest export markets—Mexico, Canada, Japan and now China, will give Kansans the confidence needed to move into the next decade and beyond.”

Sen. Jerry Moran, R-KS, chairman of the Senate Appropriations Subcommittee on Commerce, Justice, and Science and member of the Appropriations Subcommittee on Agriculture released the following statement:

“Today, the United States and China signed an historic trade agreement that will open new trade opportunities for farmers, producers and manufacturers across Kansas. I was pleased to join President Trump at the White House for the signing ceremony. This agreement includes a commitment by China to purchase at least $40 billion annually in agricultural products from the United States each of the next two years. This agreement is also a first step in addressing China’s misbehavior on trade, such as the theft of American intellectual property and forced technology transfer. Congress must work to make certain China lives up to its agreement and hold China accountable if its bad behavior continues. I will urge the administration to reach an agreement with China that removes U.S. tariffs and China’s retaliatory tariffs that are damaging to Kansas.”

Congressman Frank Lucas, R-KS, released the following statement:

“Beginning in 2015, then presidential-candidate Donald Trump promised to defend America’s farmers and workers and renegotiate the unfair trade policies between the United States and our trading partners. Since then, President Trump and his Administration have stood behind that promise and today, are delivering a strong and enforceable commitment from China leveling the playing field for America’s farmers, workers, manufacturers and businesses.”

“The historic agreement signed today takes a strong stand for American jobs and America’s workers. It protects America’s intellectual property, ends China’s unfair technology transfer process, opens financial services markets, and, most importantly, expands American agriculture, energy and manufacture sales to China.”

“In 2018, Oklahoma exported $239 million worth of goods to China, including $96 million worth of agricultural products. Today’s agreement is positive news for Oklahoma’s farmers and ranchers and begins the process of holding China accountable to its trade commitments.”

“I commend the President for his work on delivering free, fair, and reciprocal trade between our trading partners and I look forward to working on behalf of all Oklahomans as the Administration expands global markets for our nation’s farmers and workers.”

Growth Energy

Emily Skor, CEO, Growth Energy, the nation’s largest ethanol association issued the following statement:

“The signing of the Phase One Trade Agreement with China today is another positive step towards restoring market confidence for U.S. biofuel producers,” said Skor. “We’re grateful to U.S administration officials for their continued work on securing this trade agreement at such a pivotal time for our nation’s agriculture and renewable energy industries. Breaking down trade barriers between our nations will provide a valuable opportunity to restore demand for American biofuel, and we hope to soon see biofuels and DDG exports back on the Chinese market.”

National Council of Farmer Cooperatives

NCFC President Chuck Conner issued the following statement:

“The signing today of the ‘Phase One’ Trade Agreement between the United States and the People’s Republic of China represents an important step towards helping America’s farmers and ranchers expand their exports. A key to this is that the agreement includes a commitment by China to significantly increase in purchases of U.S. agricultural exports and to reform a range of trade practices that impact agriculture. We look forward to working with the Trump administration in the coming months to ensure that this commitment by China is kept so that American farmers can take advantage of this tremendous opportunity.”

Kylene Scott can be reached at 620-227-1804 or [email protected].