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McKinney: US/China deal is signed, now what?

There are some uncertainties surrounding the new phase one trade agreement with China. USDA undersecretary for trade Ted McKinney aims to provide some clarification.

For months many in the ag industry have been skeptical that China will follow through with their 40 billion dollar ag purchase commitment in the next year, but McKinney tells Brownfield there is global pressure to follow through.

“Let’s just be honest, with China you never know, but boy we heard it straight and the world heard it straight that they will honor this commitment. Tariffs on or tariffs off, they said they will honor it and I think their integrity is on the line.”

With signatures on the trade deal farmers are also wondering if they should expect more Market Facilitation Program payments.

“We are not expecting another new round of MFP this next year, but obviously we do have a third tranche of 2019 payments expected to go out.”

McKinney says President Trump has mentioned a second and third phase of the trade deal with issues impacting agriculture.