Shelley Moore Capito : Statement by Steve Nelson, President, Regarding President Trump Signing Phase One Trade Agreement with China

Statement by Steve Nelson, President, Regarding President Trump Signing Phase One Trade Agreement with China

Details 15 January 2020

LINCOLN, NEB. - 'Today's signing of the Phase One deal with China is positive for American agriculture and Nebraska's farm and ranch families. There's no question it's a critical step forward in stopping escalation of the trade dispute with what has been one of our largest trading partners and purchasers of Nebraska agricultural commodities; particularly Nebraska soybeans.

Equally important, this deal opens the door for the U.S. to regain a foothold in Chinese markets. Make no mistake, there's a lot of ground for the U.S. to make up. Our diminished access created cracks allowing many of our global competitors to make inroads into China. While we're still learning about the full provisions, there appears to be much promise in this deal for agriculture. We are extremely hopeful the excitement around the agreement is validated by the Chinese in the form of significantly increased purchases of U.S. and Nebraska agricultural commodities and products moving forward.'

Notable:

• Chinese purchases of U.S. agricultural products average just over $25 billion per year between 2014-2017, with Nebraska agriculture exports to China averaging just under $1 billion between 2015-2017 (i.e. the years prior to the start of trade disruptions).

• In 2018, Chinese purchases of U.S. agricultural products fell to $13 billion and through November of 2019 equaled $15 billion.

• According to the American Farm Bureau, the U.S. lost agricultural export sales to China over the last two years of nearly $16 billion. The two-year decline in soybeans and oilseed products accounted for more than $11 billion of the losses followed by grains and animal feed losses of nearly $2 billion.

The Nebraska Farm Bureau is a grassroots, state-wide organization dedicated to supporting farm and ranch families and working for the benefit of all Nebraskans through a wide variety of educational, service, and advocacy efforts. More than 58,000 families across Nebraska are Farm Bureau members, working together to achieve rural and urban prosperity as agriculture is a key fuel to Nebraska's economy. For more information about Nebraska Farm Bureau and agriculture, visit www.nefb.org.