The recent announcement by China to purchase more U.S. soybeans fails to make up for trade war losses. The American Soybean Association welcomed the announcement made last week, but says the industry needs “structural reform that leads to China rescinding its tariff on U.S. soybeans and fully reopening the market,” according to ASA President Davie Stephens of Kentucky.
China announced the intention to purchase 10 million metric tons of U.S. soybeans. ASA says the industry’s greatest fear is long-term damage to the relationship it has built and sustained with China. The value of U.S. soybean exports to China has grown 26-fold in 20 years, from $414 million in 1996 to $14 billion in 2017, according to ASA.
Over the next ten years, Chinese demand for soybeans is expected to account for most of the growth in global soybean trade, making it a prime market for the U.S. and other countries. The organization is calling on the Trump administration to continue its talks with China in an effort to rescind the tariffs as part of the negotiated outcomes.