(NAFB) — The U.S. and China are on track to sign the phase one trade agreement next month. President Donald Trump this week stated the negotiations are running “ahead of schedule.”
The South China Morning Post reports Trump and Chinese President Xi Jinping are set for a November 17 meeting in Chile to sign the interim trade deal. Trump says the agreement would “take care of the farmers,” among other things, including banking provisions.
A spokesperson from China’s Foreign Affairs Ministry confirmed the progress, saying, “the two sides made substantial progress” in recent talks. Top-level negotiators met over the phone last Friday and will again very soon.
The agreement includes an estimated $40-$50 billion of agricultural purchases by China over a two-year period, with $20 billion possible the first year.
Market analysts say agricultural trade with China appears to be starting to normalize, ahead of the agreement. In 2017, before the trade war began, the U.S. shipped $19.5 billion worth of agricultural products to China. However, the trade war cut those exports in half.
Source: National Association of Farm Broadcasters