Coronavirus Creates Trade Deal Uncertainty

 
 

There is still strong potential for the U.S. and China to uphold the first phase of the trade deal, but delays are likely

March 18, 2020, 1:11 pm | Wendong Zhang

 
 
AMES, Iowa – With planting season just weeks away, news of the coronavirus has farmers wondering what to expect in the marketplace and how it might impact the recently announced phase one trade deal with China.
According to the deal, China has agreed to buy $12.5 billion in U.S. agricultural products in 2020, and $19.5 billion more in 2021. Recent world events have caused uncertainty as to when those shipments will begin, and whether the targets will be met.
“The farmers are hopeful, but they want to understand how the phase one deal will impact their income and export potential, and the coronavirus adds significant uncertainty” said Wendong Zhang, an assistant professor and extension economist with Iowa State University Extension and Outreach.
unloading soybeans into truck.In an article he co-authored for The Conversation – an independent and nonprofit source of news analysis from academic experts, Zhang says China can still make the purchases noted in the deal, at least for the year 2020, but current events will make doing so more challenging.
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