China Coronavirus Outbreak Heightens Trade Concerns

By Farm Talk|27 February 2020

As agricultural markets respond anxiously to China’s attempts to control its coronavirus outbreak with a countrywide quarantine, economists are urging patience, writes Brian Brus at Farm Talk.

The disruptions could turn out to be no worse than the economic equivalent of a few sniffles to international trade, Oklahoma State University experts said. Only two months since coronavirus 2019-nCoV, or COVID-19, was first identified in Wuhan, China, it is still too early for projections.

“We are in uncharted territory,” said Larry Sanders, OSU Extension agricultural economist. “It’s been said that when the United States has an economic downturn, other countries catch a cold, and vice versa. Now, our biggest trading partner has a real virus and the rest of the world is dealing with the symptoms.

“We were just getting back on our feet from the way the current administration has dealt with trade difficulties in China – primarily the tariff situation, which harmed U.S. agriculture. We finally felt the trade deal that had just been worked out would leave us in a good position for at least a couple of years,” he said. “Now, though, China’s circumstances have changed and we don’t know exactly what to expect.”

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