The United States and China are due to sign a Phase 1 trade deal today and U.S. officials say it will include a vow by China to buy an additional $32 billion in U.S. farm goods over the next two years.
China has not confirmed President Trump’s goal of $40 billion to $50 billion of annual sales, which represents a near doubling of its purchases before the trade war began in 2018.
The phase one trade agreement between China and the United States is positive news for both sides to address challenging issues. At the invitation of the United States, Chinese Vice Premier Liu He – Beijing’s chief negotiator for the China-U.S. comprehensive economic dialogue – arrived on Monday in Washington to conclude a phase one trade agreement with the U.S. side.
Experts say American farmers and consumers will benefit from the signing of the phase-one trade deal.
Soybeans made up more than half of China’s agriculture purchases from the United States in 2017, at about $12.2 billion.
The trade between the two countries also included sorghum, Pork, Beef, Corn, Rice, Poultry and Wheat. Some analysts have speculated that farm equipment may be counted in an agriculture component of an eventual trade deal.
China and the U.S. are expected to sign the phase one economic and trade agreement this week in Washington, marking a significant milestone after rounds of intense bilateral negotiations.