The U.S. and China have reached a partial trade agreement. The measure would reportedly be a truce of current trade tensions and lay the groundwork for a broader deal that Presidents Donald Trump and Xi Jinping could sign later this year, according to the report. Additional talks are expected to occur in China ahead of talks at the APEC event in mid-November. Trump and Xi are expected to meet at that gathering.
China reportedly make some concessions on agriculture, both including purchases of farm goods and structural issues. Our sources indicate China likely committed to buying $40 to $50 billion worth of U.S. farm products, including 30 MMT of soybeans and an as-yet unspecified amount of pork.
Beijing is also said to have made some concessions regarding its practice of forcing companies to have joint ventures to set up companies in China as of June 1, 2020, but details on this are murky and this may only apply to certain companies. There is also reportedly a deal on intellectual property and some agreement on currency and foreign exchange issues.
In return, the U.S. reportedly suspended tariffs set to take effect Oct. 15 and possibly those slated for Dec. 15. Give from both sides is an encouraging signal.
The U.S. is calling today’s truce a deal, while China has labeled today’s news a pause. Today’s developments will be rolled out in two or three phases. Phase 1 needs to be written in the next three to five weeks.
The agreement is tentative and subject to change. Trump met with Chinese Vice Premier Liu He this afternoon, with a press event expected shortly. Check ProFarmer.com for more details as this story unfolds.