News
Signing of phase one trade agreement is set for Wednesday
The signing of the phase one trade agreement between China and U.S. is scheduled to take place at the White House on Wednesday.
Treasury
Secretary Steve Mnuchin says details of the agreement will be released after it
is signed. Mnuchin told reporters it’s a
very extensive agreement.
“Phase
one is very significant. It includes very significant components of changes to
technology issues, intellectual property issues, and 50 billion dollars of
purchases for our farmers,” Mnuchin said.
However,
some analysts question whether China will be able to reach that level of
agricultural purchases. Chinese soybean demand will likely fall because of
African Swine Fever. Plus, U.S. soybean exporters continue to face strong
competition from Brazil, which is expected to harvest another record soybean
crop.
In
addition, hopes for increased corn and ethanol exports have dimmed after reports
that China has suspended its plan to implement an E10 ethanol mandate.
