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Ag groups back U.S. investigation into China’s phase one trade deal shortfalls

The U.S. ag industry is welcoming the U.S. Trade Representative’s Section 301 investigation of the phase one trade deal with China.  

Kam Quarles is the CEO of the National Potato Council.

“A number of commitments were made certainly for our industry. They weren’t fulfilled and I think the administration is just trying to get a handle on that.”

Several ag groups have expressed their support for the investigation, including the NPC, National Milk Producers Federation, the U.S. Meat Export Federation, National Cotton Council, American Soybean Association and others.

In addition to missing the mark on its ag purchase agreements, China also fell short reducing some of its non-tariff trade barriers. Quarles says China still hasn’t approved a processing facility to make fresh U.S. potatoes into potato chips.

“The market is open, we just don’t have any customers there because of their governmental action.”

Quarles says the findings from the USTR’s investigation could allow the U.S. to enforce the agreement, and there are a variety of different outcomes possible.

“Given the gravity of the situation, I think the administration is likely going to feel there’s enough justification there for future action in terms of potentially new tariffs or other trade limiting measures.”

The USTR’s office is taking public comments and says they will hold a hearing connected to the investigation on December 16. Shawna Morris with the National Milk Producers Federation says the process will likely take months.

“It will help inform them where they go next and how it feeds into the ongoing China negotiations.”

The U.S. and China are meeting in South Korea this week to discuss a trade agreement.

The American Soybean Association tells Brownfield they hope the upcoming negotiations will result in an agreement that will deem the USTR’s investigation unnecessary.

Hear the interivew with Quarles.

Hear the interivew with Morris.