Nebraska Ag Connection - Nebraska Politicians Weigh In on Phase 1 Trade Agreement

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Nebraska Politicians Weigh In on Phase 1 Trade Agreement
Nebraska Ag Connection - 01/16/2020

Governor Pete Ricketts issued a statement as President Donald J. Trump signed a "Phase One" trade deal with China.

"Congratulations to President Trump on securing a Phase One trade deal with China. The President's relentless focus on right-sizing our trade relationship with China is important for Nebraska as we seek to expand markets for our ag products around the world. Looking to the future, the U.S. must stay the course on addressing remaining priorities in our national interest in Phase Two."

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, attended the White House signing. She said, "I thank President Trump and his team for working hard to negotiate this deal between China and the United States. China has agreed to purchase, on average, $40 billion of agricultural products every year for the next two years. This deal will help expand market access for Nebraska and will bring much needed economic certainty to the manufacturing, agriculture, and energy sectors," said Senator Fischer.

This trade agreement reflects a commitment from China to purchase at least an additional $16 billion in agricultural products above the $24 billion purchased in 2017, for a total of $40 billion. However. MarketWatch.com and other analysts, including from University of Kansas and Cornell University, noted that, "for its part, Beijing agreed to significantly increase its purchases of U.S. products. According to the Trump administration, China is to buy $40 billion a year in U.S. farm products -- an ambitious goal for a country that has never imported more than $26 billion a year in U.S. agricultural products."

The agreement also includes provisions that address a multitude of non-tariff barriers for commodities like beef, dairy, animal feed and biotech products.

Aside from agriculture, the trade agreement makes little headway on intellectual property, technology, financial services, currency manipulation monitoring, and a process for dispute resolution which were the primary driving factors in Trump putting the tariffs in place.

U.S. Senator Ben Sasse, an outspoken advocate for Nebraska agriculture and trade, said, "Trade is always good news. Every Nebraskan is rooting for the President to get good deals done. More trade is a win-win for Nebraska's farmers and ranchers. The Chinese aren't our foes, but the tyrants running the Chinese Communist Party are. Nebraskans want to keep the pressure on the commies in Beijing and make sure Chinese families can enjoy the best ag products in the world."

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