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Food and Agribusiness

Coronavirus could lead to renegotiation of US-China trade deal

The United States and China reached agreement on Phase One of a new trade deal late last year, but with spring planting just weeks away and the COVID-19 pandemic tightening its grip on the global economy, farmers are wondering what to expect in the marketplace and how it might impact the terms of the trade deal. Based on the terms of the agreement, China agreed to buy $12.5 billion in U.S. agricultural products in 2020, and $19.5 billion more in 2021. However, recent world events have caused uncertainty as to when those shipments will begin, and whether the targets will be met. Now that coronavirus is on the U.S. side, as well as the Chinese side, the question is whether China drops out of the deal all together or modify the agreement to compensate for the current conditions.

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