Coronavirus Adds More Doubt to U.S.-China Agriculture Pact Under Phase 1
Nothing seems to be simple these days when it comes to trade with China because although the Phase 1 trade deal was signed with the U.S. just three weeks ago, the coronavirus outbreak already threatens the trade agreement outlined in the deal, writes Karen Braun at Reuters.
This is not the first time in recent memory that the U.S.-China trade relationship has been clouded by China’s misfortunes. African swine fever or ASF, which ravaged the Chinese hog herd beginning in August 2018, came right after China slapped a tariff on U.S. soybeans and all but shunned the U.S. oilseed for several months.
Although relations have warmed and soybean and other agricultural trade has partially resumed between the two countries, the effects of ASF likely continue to cap China’s demand for feed ingredients like soybeans, making it very difficult to gauge the success of any trade truce.
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