Posted on 05/24/2018 7:54:26 AM PDT by Rio
In a pair of tweets on Monday, President Trump touted a potential trade deal with China that would mean massive Chinese purchases of U.S. farm exports, “practically as much as our Farmers can produce.” The tweets followed a joint statement by the two nations over the weekend that said China would import more American-made products, including “meaningful increases” in agricultural goods, in order to reduce its huge trade surplus with the United States.
The administration provided no specifics about the prospective increases. China is already the top customer for U.S. farm exports, and the USDA projects it will buy $21.6 billion worth of goods this year, accounting for roughly $1 out of every $7 in ag exports.
Commerce Secretary Wilbur Ross was scheduled to travel to China next week to try to finalize a trade agreement. U.S. and Chinese officials met for two days in Washington last week. The joint statement that followed the meetings appeared to tamp down fears of a trade war, which could lead to heavy tariffs being imposed on U.S. farm goods. While the trade meetings were ongoing, China said its Commerce Ministry had dropped an investigation of alleged dumping of U.S. sorghum. China is the world’s largest importer of sorghum, and the United States is the top exporter of the feed grain.
“China has agreed to buy massive amounts of ADDITIONAL Farm/Agricultural Products — would be one of the best things to happen to our farmers in many years!” tweeted Trump, adding. “On China, Barriers and Tariffs to come down for first time.” After calling on China to “continue to be strong & tight on the Border of North Korea” and venting about the Russia investigation, Trump wrote, “Under our potential deal with China, they will purchase from our Great American Farmers practically as much as our Farmers can produce.”
Soybean futures prices rose by more than 26¢, or 2%, following the U.S.-China statement on trade. Soybeans are the largest U.S. farm export to China, with sales worth $14 billion last year.
Ted McKinney, the U.S. agriculture undersecretary for trade, said during a teleconference from Beijing on Monday that he was “very cautiously optimistic” about the upcoming talks with China, reported DTN/Progressive Farmer. “I don’t want people to get overly excited.” Ag will be one of the main topics when Ross meets Chinese trade officials, said McKinney.
Agriculture Secretary Sonny Perdue wrote in an op-ed in the Omaha World-Herald that with the administration’s “aggressive approach on trade and expanding markets, we should see improved commodity prices. By finally standing up to China, this administration is seeking better market access for our farmers.”
Treasury Secretary Steve Mnuchin has said he expects ag exports to China to rise by 35% to 45%. On Monday, he said Trump has the right to reimpose tariffs on Chinese products if an agreement is not reached, reported the Associated Press.
Now let’s cut out the ethanol in gasoline requirements and sell them more corn. Or whatever farmers want to grow on that land.
HOORAY President Donald J. Trump and administration. Thanks.
Maybe this will get that poor Idaho potato farmer out of the frozen foods chest.
China has the fastest growing middle class in the world. The first thing they want to do is eat regularly and better.
Which means NO MORE PAYMENTS FOR NOT PLANTING STUFF! Winning, winning...
Burning food has never made any sense.
China buying more food from us is a good thing, but it’s not as good as just restoring the import tariffs.
China being dependent on the USA for food, helps offset the USA being dependent on China for everything else. But it would be better if we were largely independent on food and everything else. That’s what an import tariff could help do.
And at present, China’s promise is just a promise, not an action. A tariff doesn’t care about promises. You sell into our market you pay the tariff. You compete in our market against American manufacturers you pay the tariff.
If you sell into our market, the tariff gives American manufacturers an edge, and it funds the government at the same time. If you don’t sell into our market, that’s an advantage for American producers as well.
The ethanol mandate is a perfect example of how politicized utopian, statist, central planning gets immediately gamed and taken over by a few connected special interests.
Its why when the Soviet Union collapsed, it was revealed there was an existing kleptocrat shadow economy of mobsters and bureaucrats, who then immediately came to the fore.
Same in the USA, just on a lesser scale.
We should NEVER, EVER, buy meat from China, for humans and animals, even if we send meat there for processing and sent back to us. Grains and vegetables are all highly suspect, if such trade exists. The Chinese can never be trusted, on anything!!
We don't need China or any other country - we are the premier consumer market of the world ! We need to again become the premier manufacturer of goods and services for the world. American and Americans first! MAGA !
Re: https://en.wikipedia.org/wiki/Tariff_of_1789
Amen. Corn based ethanol is a boondoggle. Get rid of it.
So our relationship to China is gonna be like Africa’s? We send them food and raw materials and they send us manufactured goods? What are we - a Third World country?
My first thought....sell them corn...we can frack
Years ago....An old acquaintance was making big bucks with that deal. Really p**** me off.
Can we stop it with the gasohol then?
Chinese state owned Shuanghui Group already owns Smithfield Foods Inc, the world’s largest pork producer.
While at the same time US agricultural research is infected with chinese government spies.
Chinese national tried to steal bioengineered rice from Kansas lab.
http://www.kansascity.com/news/state/kansas/article208009774.html
While this is good news for a segment of our population, let’s not kid ourselves. We have assumed the position of a colony sending the only thing we can produce without competing to a strong trader who is forcing its manufacturing goods on us.
Exactly, they knew that they screwed the American farmer with all their bad trade deals so they invented the ethanol program to make the rest of America pay for their lack of backbone.
Yoohoo, that was in the Reagan era and people still think it happens but it hasn’t happened for decades.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.