There are new questions about the potential impact of the “phase one” trade deal with China ahead of next week’s planned signing of the agreement.
The U.S. has been insistent that China buy a lot more U.S. ag commodities, but the U.S. won’t get special treatment when it comes to corn, wheat and rice, according to Han Jun, China’s vice-minister of agriculture and rural affairs.
“This is a global quota,” said Han, as quoted by the South China Morning Post and Caixin. “We will not adjust it for a specific single country.”
China agreed to a 9.64-million-metric-ton quota for wheat, a 7.2-million-metric-ton quota for corn, a 2.66-million-metric-ton quota for long-grain rice and a 2.66-million-metric-ton quota for short and medium-grain rice when it joined the World Trade Organization in 2001. Those quotas do not specify which country would benefit, but it was generally assumed that the U.S. would get most of those sales.
Take note: If China does not agree to lift its retaliatory tariffs on U.S. grain, it could be difficult for American farmers to fill the TRQs.