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USMCA Overwhelmingly Passes in the Senate

The U.S.-Mexico-Canada Agreement passed out of the U.S. Senate by an overwhelming vote of 89-10 Thursday. For agriculture, USMCA is estimated to increase U.S. exports by $2 billion. The vote comes just one day after the United States signed a new trade agreement with China, which promises to increase ag exports by tens of billions of dollars. President Trump took to Twitter after the passage, saying “the farmers are really happy with the new China trade deal and the soon to be signed deal with Mexico and Canada.”
 
Now, the deal heads to President Trump for a signature. The president is expected to sign the agreement sometime next week during a formal ceremony. Mexico’s legislature approved the trade deal last month, and all eyes are on Canada to ratify USMCA. The Canadian parliament isn’t scheduled to return until January 27.
 

U.S. and China Sign Phase One of Trade Agreement

The U.S. and China have signed phase one of a trade agreement. President Donald Trump was joined by Chinese Vice Premier Liu He at the White House ceremony on Wednesday. “Today, we take a momentous step, one that has never been taken before with China, toward future fair and reciprocal trade,” said President Trump in opening remarks. After the signing, the text of the agreement was released. All details are public expect for specific purchase amounts.
 
During the address, Trump verified the phase one agreement includes over $200 billion in Chinese purchases of American goods and services over the next two years. That includes at least $40 billion in food, agricultural and seafood products annually for a total of $80 billion in the next two years. The president also said he would remove all U.S. tariffs on Chinese imports as soon as the two countries completed phase two of the agreement, adding “I do no expect there to be a phase three.”
 

Trade Agreement is Closer to Signing

A phase one trade deal between the U.S. and China is expected to be signed within a matter of days. While President Trump and Chinese President Xi are expected to participate in a signing ceremony, details have not been announced. The South China Morning Post says Chinese Vice Premier Liu He will be in Washington, D.C. this Saturday and the trip is expected to continue into the middle of next week. In an interview with Chinese state television, China’s ambassador to the United States, Cui Tiankai, said China will honor its commitments in the phase one trade agreement. However, the ambassador said the U.S. must respect China’s sovereignty over Taiwan.

U.S. and China Come to Agreement

 
The news of a trade deal between the U.S. and China started to unfold this past week. Chinese officials were vague in a press conference today on the details, but did confirm an agreement on the context of a phase one deal. This includes an increase in agricultural imports. A 25 percent tariff will remain in place, but the penalty tariffs originally set to go into effect Sunday, December 15 will not be charged. Negotiations on the phase two deal will begin immediately. Read more.

New Site Sought for U.S.-China Trade Deal Meeting

According to a tweet from President Donald Trump, the U.S. and China are trying to secure a new location to sign a tentative trade deal. President Trump and Chinese President Xi were expected to meet during the Asia-Pacific Economic Cooperation Summit in Chile, but that event was canceled due to ongoing protests. Trump said phase one is about 60 percent of the total trade agreement.

Chinese Dry Bean Production Pegged at 195,000 MT

China’s dry bean production for 2019 is estimated at 195,000 metric tons, with supplies of 221,000 MT.
Both planting and harvest area for black beans in China has been significantly reduced due to a conversion to soybeans and low market prices. The planting and harvest area for dark red kidney beans increased 35 percent from the previous year due to high domestic demand and decreased planting and harvest area in 2018. Market demand for high-grade (also called canned grade) DRK has been high. More exporters are prepared to switch their export business to import.
 

Chinese Dry Bean Production, Exports Continue to Decrease

According to the U.S. Dry Bean Council, the first planting and production report from China indicates dry edible bean planting areas in major Chinese production regions continues to decline. China’s total dry bean production is expected to be 166,000 metric tons, a decrease of 23 percent from 2018. Additionally, Chinese exports of dry beans have declined over the past five consecutive years (in value terms), while domestic consumption has kept growing. Exports in 2018 were down almost 25 percent from 2017 at 211,000 MT, and down 66.4 percent from 2013. Read more.