Agriculture Secretary Sonny Perdue says China may fall short on its U.S. ag purchases this year as outlined in the phase one trade deal. NDSU Extension Crops Economist Frayne Olson agrees, saying the slow implementation, coronavirus outbreak and a lack of ag purchases in the summer all likely have an impact. “We are seeing much more aggressive buying now, but I don’t think total numbers, in dollar volumes, will be large enough to meet targets.” Olson is unclear how implementation is officially being scored. In the deal, China agreed to purchase an additional $12.5 billion worth of U.S. ag products in calendar year 2020, but Olson says the exact number is vague. There’s also fuzzy language on what happens if China doesn’t meet expectations. “The deal says if the U.S. or China couldn’t meet the targets, the negotiators would get back together and come to an amended compromise.” Olson thinks China is trying to live up to the deal.
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