Vilsack Talks Trade

Vilsack is Optimistic About Phase One Trade Deal with China

By Bob Larson, with the Ag Information Network

The end of the Phase One Trade Deal with China is fast approaching and many are wondering how it will impact trade next year between the world’s two largest economies.

Ag Secretary Tom Vilsack said he’s talked with his Chinese counterpart and believes, at this point, the expectation is that we’re going to continue to see purchases.

“Why? Because I think it’s in both China and the United States’ best interest to continue to look for ways in which we can collaborate and cooperate in this trade sphere. Secondly, the fact is China needs us; they need the food that we can supply. So, I think there’s an economic and food imperative on their part, and I think it makes good sense for us to be able to maintain some degree of connection with China,” said Vilsack.

Vilsack said America is also engaging with other Southeast Asian countries about improving trade relationships and lowering barriers … and possibly seeing the U.S. rejoining the Trans-Pacific Partnership Agreement, now known as the CPTPP.

“It’s got to get through Congress: how does it get through Congress? Well, it has to have a majority of votes in Congress. Well, the reality is that there are folks on both the right and the left who have raised issues and concerns about trade in the theory and belief that somehow trade has disproportionately negatively impacted American workers or American businesses. So, I think first and foremost we have to build a strong foundation domestically, where people feel more confident in our economy,” explained Vilsack.

Vilsack said that’s why it’s so important for the reconciliation bill and the infrastructure bill to get passed, because that’s what creates the momentum, internally, domestically.

California Ag Today2021-09-28T19:24:00-07:00September 28th, 2021|

China Threatens All US Agriculture

Trade War Escalates Into Worse Case Scenario

This week, China announced that state-owned companies have suspended purchases of U.S. agricultural products. Additionally, China may impose import tariffs on newly purchased U.S. agricultural products after August 3. This announcement, so far, does not pre-empt purchases from non-state-owned enterprises.

The Chinese Ministry of Commerce says that this action is in retaliation for the proposed ten percent tariffs announced by the U.S. on $300 billion of Chinese imports, which may be in place on September 1.

A trade meeting between US Trade Representative Robert Lighthizer, US Treasury Secretary Steven Mnuchin and Chinese officials was held last week in China. The goal of the meeting was to restart the trade negotiations that had ended in May. Another meeting is planned for early September.

In 2017, California farmers/ranchers exported $2.27 billion in agricultural products to China/Hong Kong. The market ranked third for California farm exports, behind the European Union ($3.4 billion) and Canada ($3.3 billion).

Top California farm exports to China in 2017 were:

Pistachios – $663.3 millionAlmonds – $500.8 millionWine – $185.3 millionDairy and products – $174.9 millionOranges and products – $123.8 million

The full list can be found here, on Page 11 of the 15-page PDF file.

Lastly, USDA recently rolled out updated trade data that indicated the U.S. exported $19.5 billion of agricultural products to China in 2017. As a result of retaliatory tariffs, agricultural exports were reduced to $9.1 billion in 2018 and have continued to decline, with a $1.3 billion drop in the first half of 2019.

Source: CFBF Federal Policy Division

California Ag Today2019-08-11T13:43:26-07:00August 8th, 2019|