While A Month Later Than Expected, Many Welcome U.S.-China Talks In October

The U.S. and China have agreed to restart trade talks in early October, in what is hoped will be a turning point in the long-running trade war.  The recent announcement ended weeks of speculation on whether the two nations would renew stalled trade talks, and followed China’s recent statement that it wanted to de-escalate the tariff war—though new tariffs by the U.S. took effect this month, anyway.  Agreeing to renew talks comes as welcome news to the American Farm Bureau Federation.

“Certainly, our direct exports to China, which were in the twenty-plus billion dollars, just in 2017, are now, certainly, less than $ 10 billion a year and steadily going less," said AFBF trade adviser Dave Salmonsen.  "And, of course, we heard, less than a month ago, that China was saying they wouldn't buy any more US Ag products."

Beijing’s top trade negotiator now plans to travel to the U.S. in early October, though the U.S. says deputy-level meetings will take place this month, suggesting a litmus test for moving forward.  President Trump recently called negotiating with China through the World Trade Organization, “a disaster”.

“China has taken advantage of it and us, and that’s not happening any more," Trump said.  "But the farmers have been taken care of; $16 billion and $12 billion each year.”

An August survey shows more than two-thirds of U.S. producers feel the Market Facilitation Program payments have either completely or somewhat, relieved their tariff concerns.  Trump argues China needed to be confronted for its longstanding unfair trade practices, and told reporters, he personally approved a recent trip to Beijing by Republican Senators David Perdue and Steve Danes to gage China’s intentions.

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