Questions Linger Around Phase One

With the recently signed Phase One, there was a specific dollar amount f American Ag products that China committed to purchasing.

But, will that happen?

USDA analyst, Sharon Raszap, says there is still a lot of uncertainty about the deal because of what was missing.

“It didn't specify the timing that these purchases are going to be made,” Raszap said.  “It also didn't release a mix of commodities, so we don't know how much of that value could go for soybeans, for corn, for fish; And it also didn't take away the tariffs on US goods.”

While China recently announced exemptions to the tariffs might be possible, questions linger.

“Chinese companies have to apply for these exemptions and they’ll be considered on market conditions,” Raszap added.

USDA officials said not much concrete information on which to base a forecast of how much of what products China might buy and when.  And another unknown, is how the Coronavirus will impact purchases, or China's ability to import.