North Dakota Senator John Hoeven says its is too early to tell if China will meet their purchase commitments in the Phase one deal or if an additional trade aid package will be needed in 2020. Hoeven says he’s not ruling out another round of MFP payments for farmers and President Trump tweeted this morning a third round is possible if it is needed and it will be paid for by tariffs.
Hoeven says there are questions about what impact the coronavirus will have on China’s ability to meet their purchase obligations in year one of the deal.
The Senator says he’s trying to remain optimistic, especially with Chinese President Xi commenting this week that they are committed to the goals in the pact.
However, USDA Chief Economist Robert Johannson only included $14 billion of Chinese exports in his baseline projects at today’s Ag Outlook Forum, which is well below the $36.5 billion amount they agreed to for agriculture.
