The latest trade numbers show strong U.S. agricultural exports, with a significant increase in exports to China.
“We’re in the second year of our two-year Phase One commitment with China, which committed China to purchasing certain dollar values of U.S. agricultural products,” American Farm Bureau Federation (AFBF) Senior Economist Veronica Nigh said. “So, thus far in 2021, January through August, we’ve exported nearly $18 billion of U.S. ag products.”
Nigh noted China is not far from the pace needed to reach the Phase One commitments. The agreement was signed in January 2020.
“We believe the cumulative exports to China needs to be about $20 billion, at this point, in January through August. So, that means they’re only 12% behind where they need to be in order to reach the 2021 total value,” she said.
Nigh said U.S. exports this year are strong despite transportation challenges in the United States.
“On the west coast, we have port congestion. In the Gulf, they’re still recovering from Hurricane Ida. And so far, in 2021, the U.S. has exported over $115 billion in U.S. agricultural exports, of which almost 16% of that has been going to China,” she said. “U.S. ag exports are up 28% compared to the same time period in 2020. Exports to China are up almost 120%.”
A full list of the key outcomes of Phase One of the trade agreement is available here.