A new trade deal will likely increase U.S. farm exports to China, but some agricultural experts are wary about the long-term effects.
The deal, signed Jan. 15, requires China to buy an additional $200 billion worth of American goods over the next two years. About $32 billion of that will be agricultural goods, including pork, soybeans and wheat. In addition, China is relaxing rules on inspections, licensing and registration that have served as barriers to U.S. exports of pet food, seafood, dairy products and other food products.
While some farm groups celebrated the deal, others were concerned that it didn’t specify trade policy beyond the end of 2021.
“This deal does not end retaliatory tariffs on American farm exports, makes American farmers increasingly reliant on Chinese state-controlled purchases and doesn’t address the big structural changes the trade war was predicated on achieving,” a spokesperson for Farmers for Free Trade told the Wall Street Journal.
