Ag leaders react to China trade deal

WASHINGTON — Major steps to settle the two-year trade war between the United States and China were taken Jan. 15 and representatives from agriculture groups joined in cautious optimism about Phase 1 of an agreement.

Here’s what they had to say:

“We are optimistic that the day will come when we fully restore our vital trading relationship between the U.S. and China. I can’t underscore enough how much long-term trade stability with one of our top customers means to Illinois soybean farmers and the ag industry. We see this as a sign of brighter days to come. However, we hope that more details emerge on the status of China’s current tariff on U.S. soybeans, which were not included in today’s trade deal. A long-awaited win for the soybean industry will come when the soybean tariffs are fully rescinded, and we are anxiously awaiting that announcement.”

Doug Schroeder, president

Illinois Soybean Growers

“The signing of the China Phase 1 trade deal is a significant, historic day for the nation’s No. 1 soybean producer, Illinois farmers, who are ready to get back to business and gain their profits from the marketplace. Illinois farmers are ready to regain our trading position with China as a result of the signing. We are well positioned to fulfill China’s demand of soybeans, pork and additional commodities and this agreement provides a pathway for the next generation of Illinois young farmers. Illinois Farm Bureau remains interested in the dollar amount of agricultural purchases to be made in the coming years by China and the means by which those commitments will be upheld. We look forward to continued phases of a full-fledged free trade agreement.”

Richard Guebert Jr., president

Illinois Farm Bureau

“The Phase 1 agreement is great news for Hoosier farmers, since China is one of Indiana’s top trading partners. Strengthening our relationships with trading partners from around the world will bring certainty to the market for many of our farm families and the agricultural industry as a whole. Indiana Farm Bureau remains optimistic and looks forward to the ongoing discussions with China.”

Randy Kron, president

Indiana Farm Bureau

“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. 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.”

Roger Johnson, president

National Farmers Union

“The structural reforms, particularly those affecting feed grains, agricultural biotechnology and sanitary and phytosanitary measures — once fully committed and implemented — will hopefully offer lasting impacts beyond short-term commitments to make accelerated, market-driven purchases. The agreement, as we understand it, will offer opportunities for U.S. farmers to once again become competitive in China and serve our customers by addressing retaliatory tariffs and long-standing, non-tariff barriers to trade.”

Darren Armstrong, chairman

U.S. Grains Council

“While China’s Phase 1 commitments are welcomed, U.S. pork exports continue to be suppressed because of the country’s 60% punitive tariffs. In order to fully capture the benefits of this deal, we need China to eliminate all tariffs on U.S. pork for at least five years. According to Iowa State University Economist Dermot Hayes, if U.S. pork gets unrestricted access to the Chinese market, it will reduce the overall U.S. trade deficit with China by nearly 6%, generate 184,000 new U.S. jobs and produce $24.5 billion in new pork exports all within the next decade. However, if the U.S. continues to face 60% punitive tariffs — and a cumulative tariff of 68% — while our competitor nations are assessed an 8% tariff, U.S. pork sales will be suppressed as China imports more pork from other nations.”

David Herring, president

National Pork Producers Council

“The agreement will be a game-changer for the U.S. beef industry. For many years, Chinese consumers have been denied access to high-quality U.S. beef — the same U.S. beef we feed to our families. Non-scientific trade barriers like the ban on production technologies, the extensive traceability requirements and the 30-month (Bovine Spongiform Encephalopathy) restriction have greatly limited our ability to tap into growing beef demand in China. The removal of these massive trade barriers gives Chinese consumers access to the U.S. beef they desire, and it gives America’s cattlemen and cattlewomen the opportunity to provide U.S. beef to a growing consumer-base that represents one-fifth of the global population and a middle-class that is greater than the entire U.S. population.”

Jennifer Houston, president

National Cattlemen’s Beef Association

“The signing of the trade agreement is another positive step towards restoring market confidence for U.S. biofuel producers. We’re grateful to U.S administration officials for their continued work on securing this trade agreement at such a pivotal time for our nation’s agriculture and renewable energy industries. Breaking down trade barriers between our nations will provide a valuable opportunity to restore demand for American biofuel, and we hope to soon see biofuels and DDG exports back on the Chinese market. In 2016, China was the third largest export market for U.S. biofuels, but exports were nearly eliminated due to retaliatory tariffs and trade negotiations.”

Emily Skor, CEO

Growth Energy