Coronavirus: China ‘fully expected’ to meet trade deal terms despite Covid-19 outbreak, top US officials say
- US trade representative Robert Lighthizer and Agriculture Secretary Sonny Perdue signed a letter praising China’s progress on trade deal
- Statement did not mention coronavirus outbreak but said China ‘fully expected’ to meet terms of phase one deal
China is taking numerous steps to meet the agricultural commitments made in the phase one trade deal with the United States, according to a statement signed by two top US officials.
Without mentioning the virus, which has infected more than 80,000 and killed more than 2,700 people worldwide, Perdue said that he was “encouraged by progress made last week” in meeting the agriculture purchase commitments in the deal and that “we fully expect compliance with all elements of the deal”.
It also highlights China’s approval of a wide list of seafood products for import and its licensing of various feed additives for import.
While it was not mentioned in the statement, posted to the US Department of Agriculture’s website, China also moved to expand American access to its beef market this week. On Monday, China’s customs office said it had conditionally lifted a ban on beef products that come from American cows older than 30 months.
“President [Donald] Trump signed the phase one agreement a little more than a month ago and we are already seeing positive results,” said Lighthizer in the statement.
China has yet to make any large-scale purchases as part of the deal, through which it has agreed to buy an extra US$200 billion of US goods on top of the 2017 import level over two years. As part of this, it must buy an extra US$32 billion in agricultural products over two years, despite the fact that this trade largely fell away in 2018 and 2019 due to Chinese trade war tariffs.
“The ongoing spread of the coronavirus is taking a toll on China’s public health and economy, and may impact its ability and willingness to meet the commitments in the Phase One deal,” the report read.
“The deal includes a clause that calls on parties to enter consultations if ‘a natural disaster or other unforeseeable event outside the control of the parties delays a party from timely complying with its obligations’,” it continued.
This, at least, should free up some demand for US goods to enter the market, but the breakdown in trade infrastructure is a significant barrier.
Various US officials have spoken publicly on the trade deal in recent weeks in light of the outbreak.
Commerce Secretary Wilbur Ross and director of the National Economic Council Larry Kudlow had both previously suggested that the epidemic could boost US job prospects, if it forced manufacturers to leave China and set-up elsewhere. Kudlow also suggested that the virus could hit China’s efforts to buy US products.
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