China-US Trade Tensions: Farmers hope trade deal with China will follow NAFTA renegotiation
Updated 18:06, 09-Oct-2018
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Agriculture remains at the forefront of the China-US trade tensions, following a series of tariffs and retaliatory tariffs. A new trade agreement between the US, Canada and Mexico has been largely welcomed by U-S farmers. Many hope a deal with China will soon follow. CGTN's Dan Williams has the story from the state of Wisconsin.
The World Dairy Expo held in Madison, Wisconsin is a celebration of the industry and attracts dairy farmers from across the globe. But this year, the event takes place amidst strained agricultural international relations. The US-China trade conflict has brought uncertainty to the industry. Last year, the US exported more than $577 million dollars of dairy products to China, making it the third largest market for US dairy exports. But that is under threat after China imposed retaliatory tariffs in July. Wisconsin Governor Scott Walker remains hopeful of an improved trade deal between the countries, but is also keen to emphasize, the state remains open for business.
SCOTT WALKER WISCONSIN GOVERNOR "We are already the largest state by far in terms of exports into China by any US state. I've always said that no matter what happens in Washington, as long as governors and state delegations are visiting Mexico to Canada to China to the UK, to other places around the world, we're interested in trade."
DAN WILLIAMS WISCONSIN "The new trade agreement, agreed this week, between the US, Canada and Mexico is largely seen as a step in the right direction by US farmers. But many farmers remain concerned with what appears to be the lack of progress over a deal with China."
In March, the U.S. imposed steel and aluminum tariffs on a number of countries including Europe, Canada and China. Those countries, along with others, retaliated with tariffs of their own with many targeting agriculture. In a speech this week, the US Vice President Mike Pence claimed that Beijing was using tariffs to influence the November mid-term elections. But Wisconsin dairy farmer Pete Kappelman says the retaliatory tariffs were no surprise.
PETE KAPPELMAN WISCONSIN DAIRY FARMER "It would be kind of expected, right. There would be a price to pay to renegotiate. You know it's not countries that sell product to other countries, it's companies and businesses and cooperatives that sell products to other businesses. Now I think the question is how long will I pay more if I am an importer of US product. When do I go looking for something from a different part of the world."
In the state of Illinois, Brian Duncan is in the middle of harvest season. Duncan, who is also the Vice President of the Illinois Farm Bureau is also concerned about the long-term damage to trade relations.
BRIAN DUNCAN VICE PRESIDENT, ILLINOIS FARM BUREAU "As we are harvesting this crop, we are making decisions on what to plant next year, how it's going to look. So with this level of uncertainty, that makes that planning process challenging too. We have worked hard over the last several decades to gain markets and the Chinese market has been one that we have spent a lot of focus on and great potential there."
Over the past four years, the US Dairy industry has struggled with the issue of oversupply and low commodity prices. Tariffs have only added to the problem. But with the United States-Mexico-Canada Agreement, many farmers remain hopeful it is a sign of things to come. Dan Williams, CGTN, Wisconsin.