Ag Community Reacts To Phase One Agreement

On Wednesday, the U.S. and China agreed to what’s known as the Phase One trade deal.  Over the next two years China will agree to purchase an estimated $80 billion worth of additional American agricultural products.  President Trump called Wednesday’s signing historic.

“We take a momentous step, one that has never been taken before with China, toward a future of fair and reciprocal trade.”

At Wednesday’s singing ceremony, Ag Secretary Sonny Perdue said this will give the farm economy a much needed boost.

“The agreement finally goes a long way toward leveling the playing field for U.S. agriculture and I believe it will be a real bonanza for America’s farmers, ranchers, and producers.”

Central Washington’s Dan Newhouse had praise for Phase One.

“Huge increases of agricultural products from the United States, which will have a really positive impact on many of

the different crops that we produce in the state of Washington.”

However, not all comments were in support.  Senate Minority Leader Chuck Schumer earlier this week called the deal weak, suggesting Trump reached a watered-down agreement to claim a “win” during his reelection campaign.

Click Here to read the text of Phase One.

Here are other reactions from across Ag and across the Northwest:

“President Trump’s China Phase One Agreement is positive news to open markets to American businesses and our farmers,” said Eastern Washington representative Cathy McMorris Rogers.  “As we move to the second phase, I urge the administration to continue to lead with policies that ensure America maintains our global competitive edge. That means being tough on China, further cracking down on its intellectual property theft, and advancing critical restrictions on Huawei to safeguard America’s 5G networks. This is how America will win in a global economy. We need to lead on the emerging technologies defining our future, and we must be vigilant and strong against China’s long track record of cheating and stealing our technology to get ahead.”

“The U.S. potato industry welcomes the signing of this Phase One Agreement and hopes the agreement will bring new opportunities for the export of United States fresh and processed and potatoes to China,” said Larry Alsum, President of the National Potato Council.  “This signing today, coming on the heels of the new Japan free trade agreement and the anticipated ratification of the USMCA, creates trade momentum for our industry and sets the stage for future increased market access that may result in substantial gains for U.S. growers,” said Jared Balcom, Vice President of Trade Affairs for NPC.

“After so many months of uncertainty and escalating tensions, it is a good sign that our two countries appear to have

found common ground,” said National Farmers Union President Roger Johnson.  “We are hopeful that this deal will meaningfully address China’s problematic trade practices and intellectual property theft as well as finally establish some stability for American farmers’ export markets.

“But given the numerous deals that have been reached and then breached in the past two years, we are also skeptical,” Johnson continued.  “And without more concrete details, we are deeply concerned that all of this pain may not have been worth it. Not only has this trade war cost farmers billions of dollars worth of sales to China, but it has also bruised our reputation, making other trading partners reluctant to work with us. To justify these lasting damages, this deal must deliver more than vague, unenforceable, short-term commitments ­– we need real and lasting behavioral change from China, and we need reliable and robust agricultural export markets. That is the standard the Trump administration should be aiming for as it negotiates the next phase of this agreement.”

“Today’s signing is an important step in giving America’s farmers and ranchers the ability to get back to business in the global market,” said American Farm Bureau Federation President Zippy Duvall.  “China was once the largest market for U.S. agricultural products but has dropped to fifth largest since retaliatory tariffs were introduced. This agreement will help turn around two years of declining agricultural exports. The potential of tens of billions more in exports is welcome news for farmers who are eager to compete on a more level playing field.

“This is a great way to start the New Year, but there is more work to do,” Duvall stated.  “We encourage the Senate to pass the U.S.-Mexico-Canada Agreement to increase export opportunities with our North American neighbors. We also look forward to additional trade agreements with countries that are locking-in deals with our competitors. This must be a focus in 2020.”

“It was a real honor for USApple to be invited by the White House to this important ceremony,” said USApple Chairman Jeff Colombini, a third-generation California grower and president of Lodi Farming, Inc. “Today’s agreement in which China is committing to large purchases of U.S. agriculture products is positive news. The U.S. apple industry very much wants to supply that market.”

“Any progress on removing trade barriers for our farmers is good news,” said National Association of State Departments of Agriculture President and North Dakota Agriculture Commissioner Doug Goehring.  “The Phase One agreement takes critical steps towards addressing the unjustified trade barriers that U.S. farmers and ranchers have faced in China for far too long. NASDA looks forward to reviewing the text in full detail and working with the Administration to ensure China delivers on their commitments.”

“Western Growers applauds the significant strides the Trump Administration has made in securing fairer deals for American farmers with key trading partners around the world. On the heels of other recent trade gains with Japan, Mexico, and Canada, the phase one agreement represents constructive progress in the effort to rebalance our nation’s trade relationship with China.

“While American farmers have borne the brunt of the trade war with China, with the overall U.S. exports of fruits, vegetables and tree nuts to China declining by double-digits over the past two years, we are optimistic that with the completion of phase one, and the future completion of phase two, U.S. specialty crop farmers will be able to achieve expanded access to, and financial gain from, this valuable Asian market.”

“The National Grain and Feed Association (NGFA) commends President Trump and his administration for successfully concluding and signing a Phase One trade accord with the People’s Republic of China,” said National Grain and Feed Association Chairman Eric Wilkey.  “It represents a significant first step in resolving disruptions and long-standing, festering impediments involving trade between the world’s two largest economies, and contains substantial commitments from China to purchase U.S. food, agricultural and seafood products. It also is significant that the agreement contains Chinese commitments to abide by science- and risk-based processes with transparency and specific timelines for regulatory actions related to agricultural biotechnology, animal food, and meat and poultry products.

“NGFA looks forward to delving into the details of the agreement and its application to U.S. agricultural exports, and will have additional comments and analysis once doing so,” Wilkey added.  “But early indications are that the Phase One agreement will help begin the process of restoring U.S.-China agricultural trade volumes and effectively address several existing trade impediments for specific agricultural products.

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