Keep China Phase One trade agreement

Legislative Watch: Phase One critical to ag; dicamba uncertainty exists; Kenya trade objectives released; Callahan ag affairs assistant for USTR.


P. Scott Shearer, National Hog Farmer

Jun 19, 2020


Nearly 200 agricultural associations and companies this week sent a letter to President Trump expressing their support for the China Phase One Trade Agreement and its importance to U.S. agriculture.


The group is urging against the United States withdrawing from the agreement as Trump recently stated his disappointment with China's failure to contain the coronavirus pandemic and it "had cast a pall" over the trade deal. Trump tweeted yesterday that the United States has an "option, under various conditions, of complete decoupling from China."


The letter states, "As you know, the U.S.-China Phase One Trade Agreement is critical to both the near- and longer-term success and growth of American agriculture and the millions of American jobs the agricultural sector sustains."


The letter emphasizes the importance of the trade agreement to U.S. agriculture and the need to continue with the agreement. "While the current pace of U.S. agricultural exports to China is below the pace needed to meet the Phase One goals, American farmers, ranchers and rural communities remain optimistic that the purchases under this agreement will accelerate and be fulfilled by China, and that as a result, the American agriculture sector will enjoy important market opportunities. This is especially important considering that U.S. net farm cash income in 2020 is projected to decline 9% or $11 billion from the prior year.


"The U.S.-China Phase One Trade Agreement will act as foundation for prosperity of the U.S. agriculture sector. At this especially challenging time, rural America needs one of its greatest potential export markets for food and agricultural products."


U.S. Trade Representative Robert Lighthizer, testifying at both a House and Senate trade hearings on Wednesday, says he expects China to live up to its commitments of agricultural purchases. The hearings...


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