Peterson Cautiously Optimistic about Phase One China Deal

WASHINGTON (January 15, 2020) – Rep. Collin Peterson, Chair of the House Agriculture Committee, issued the following statement Wednesday after President Donald Trump and Chinese Vice Premier Liu He signed the first phase of a trade deal between the two countries.

“My district produces everything from dairy, meat and poultry, to feed and pet food, to alfalfa and ethanol. This agreement appears to include positive structural changes and commitments that could increase access to the Chinese market for those and other products produced in districts across the country,” said Peterson. “I appreciate the negotiators and staff at USTR and USDA who have worked so hard to get us to this point. The question now is whether China will play by the rules it has agreed to here. I’m also concerned that, long-term, certain crops may not regain the foothold they lost in the trade war. If those purchases don’t materialize, I worry what effects that will have on the markets for crops like soybeans and sorghum.”

The tariff war and retaliatory tariffs started in 2017. During that time Minnesota producers have faced depressed prices, and a significantly higher basis which means higher costs and fewer customers. The tariff war has disrupted marketing arrangements that farmers built over the last few decades, and introduced Chinese purchasers to new supplies from our competitors.