While the U.S. and China have an agreement, in principle, for a phase one trade deal, both countries will now move to a legal review of the language. They also need to determine how to handle the signing of the agreement. President Donald Trump touted this trade agreement on Friday. “These farmers are going to have to go out and buy much larger tractors because it means a tremendous amount of business.” The Administration says China has agreed to purchase $50 billion in U.S. farm products each year for the next two years, but China has not confirmed that number. According to INTL FC Stone, if China would purchase $50 billion in agricultural products, they would go from 15 percent of the United States’ export value to 32 percent. China has traditionally been a big buyer of U.S. soybeans and pork, but this type of commitment would greatly expand the list of exports going to China.
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