The 18-month trade war between the United States and China appears to be one step closer to resolution.
On Wednesday morning, U.S. President Donald Trump and Chinese Vice Premier Liu signed Phase One of a bilateral trade agreement at the White House.
The move was cheered by leaders of Texas Farm Bureau (TFB), the state’s largest general farm and ranch organization.
“Texas farmers and ranchers are encouraged by (the) signing of a Phase One trade agreement between the United States and China. The agreement with China includes substantial purchases of U.S. agricultural products annually over the next few years. This is significant. The record for U.S. agricultural exports to China was $26 billion in 2012,” TFB President Russell Boening said.
China’s top five global imports are soybeans, dairy products, fruit, beef and prepared foods.
“China was our second-largest market not long ago. Bringing China back as a sizable market for U.S. agriculture is critical to the economic sustainability of America’s farmers and ranchers,” Boening said.
U.S. and Chinese officials have been negotiating a trade deal on and off for months. Trump said the landmark trade deal was a longtime coming.
“Together, we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families,” Trump said.
According to the U.S. Trade Representative’s (USTR) Office, Phase One addresses intellectual property rights, forced technology transfer, financial services, macroeconomic policies and agriculture.
Chinese officials agreed to speed up the time it takes for China to approve agricultural biotechnology and will implement a transparent, predictable, efficient and science-based process for doing so.
Sanitary and phytosanitary protocols in China will be updated and will be science- and risk-based.
USTR reports China will allow more U.S. beef, pork and poultry imports by expanding the scope of the products allowed in the country.
A full list of the key outcomes of Phase One of the trade agreement is available here.