China May Purchase $20B In First Year Of Phase One Agreement

The phase one agreement with China would boost U.S. ag exports to at least $20 billion in its first year.  The overall agreement includes $40-50 billion of U.S. farm commodity sales to China over a roughly two-year period.

According to Bloomberg News, China says it would aim to buy at least $20 billion worth in the first year, if the agreement is signed.  $20 billion would boost U.S. export sales to China back to levels seen before the trade war began.  China imported $9.1 billion of U.S. farm products in 2018, down from the 2017 level of $19.5 billion.

China and the U.S. are working out the details of the limited phase one agreement that could be signed next month.  Meanwhile, Vice President Mike Pence delivered a closely watched speech on China in Washington, D.C. Thursday.  In his remarks, Pence called on China to “start anew by ending the trade practices that have taken advantage of the American people for far too long.”

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