Phase one a reset on trade with China
The CEO of the Minnesota Soybean Research and Promotion Council says the phase one deal essentially resets trade with China.
Tom Slunecka tells Brownfield the Chinese have stipulated under the agreement they will buy whenever market conditions are favorable.
“So it really puts us back to square one. The Chinese buyers are going to buy when the price is best for them. They’re running businesses just like we are, so I’m sure they’re going to try to feel out when the price is going to be lowest and try to purchase then.”
He says that doesn’t bode well for certain U.S. commodities.
“Which isn’t going to help us a lot up in the Upper Midwest since we’re the last to get purchased anyway. So I think we’ve got to be very cautious as to what the results of this are going to be.”
But Slunecka says the fact that China has agreed to the terms of phase one means trade between the two countries should soon get back to levels seen prior to the trade war.