Rising fears of a shallow U.S.-China deal
Story Date: 2/27/2019

 

Source: POLITICO'S MORNING AGRICULTURE, 2/26/19

Will Trump settle for a weaker deal with Beijing? That's what some advisers and lawmakers increasingly fear, after Trump promised to hold off on raising tariffs this weekend and on Monday touted planning for a Mar-a-Lago meetup with Chinese President Xi Jinping next month to "conclude an agreement."

A quick resolution could juice financial markets — one of Trump's favorite metrics of his presidency — but those who favor a tough China policy worry it would leave out substantial reforms long sought by the U.S., writes Pro Trade's Doug Palmer.

Senate Finance Chairman Chuck Grassley (R-Iowa) urged Trump not to mistake a "half deal" for a "good deal," warning in a tweet on Monday that the final agreement needs to include structural changes and enforcement mechanisms.

Grassley's House counterpart, Ways and Means Chairman Richard Neal (D-Mass.), also questioned if a subpar deal is in the works, Pro Trade's Adam Behsudi reports.

— "It seems the president has already decided that he's going to have a deal and that he will announce it with President Xi at Mar-a-Lago," Neal said in a statement.

Perdue said on Monday the U.S. won't be "bought off" by increased ag purchases, like the additional 10 million metric tons of U.S. soybeans he said China has promised to buy, unless deeper disputes are resolved. He said those soybean buys are "imminent."

The USDA chief also said negotiations with Beijing over agriculture are down to the granular level, including on narrow issues like China's ban on "ractopamine," a controversial feed additive that helps livestock gain weight. He said Chinese Vice Premier Liu He is even involved in "line by line" discussions on ag issues.

























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