The government shutdown could stall progress on President Trump’s North American Free Trade Agreement replacement, the U.S.-Mexico-Canada Agreement. Analysis of the agreement has stopped during the shutdown as the U.S. International Trade Commission, responsible for examining the trade agreement, remains at a standstill.

If continued, Politico reports the shutdown could delay release of the report on the economic impact of the new agreement. The Trade Commission is required to submit the report, which many lawmakers will use to craft their positions on the deal, by March 15th. USMCA was signed by Trump and his counterparts on November 30th, last year. Trump followed a day later with notification that he would withdraw the current NAFTA if lawmakers didn’t move to approve USMCA quickly.

The Trump administration remains quiet ahead of talks with China next week, fueling concerns that concessions by China may not be enough to satisfy U.S. demands.

Bloomberg News reports the measures by China to open its economy “mostly fall short” of U.S. Trade Representative Robert Lighthizer’s demands. Lighthizer wants changes on alleged forced technology transfer and theft of intellectual property. China’s moves to open its economy included renewed purchases of U.S. soybeans and rice, critical for a down ag economy.

However, With Lighthizer demanding “structural changes” on technology transfers, China continues to complain “it’s not clear the U.S. side knows what it wants.” A Trade analyst recently told Blomberg “it’s hard to imagine” a deal can be reached by the U.S.-set deadline of March first. Trade officials from the U.S. and China will meet in Beijing next week.

New leaders convene in Congress Thursday with the need to find an end to the government shutdown. The Department of Agriculture and other federal agencies are reaching a “breaking point,” according to Politico, as many agencies are running out of carryover funding.

Democrats who now control the House of Representatives were expected to vote on a spending package upon taking office Thursday, but the Senate isn’t expected to accept the plan. USDA has closed Farm Service Agency offices across the nation due to the shutdown.

Producers who have certified 2018 production are expected to receive Market Facilitation Program payments, the aid package designed to offset trade losses to farmers stemming from the Trump administration’s trade agenda. However, producers who have yet to certify 2018 acres will have to wait until the shutdown concludes.

USDA has continued some services, included meat and commodity inspections, along with Forest Service law enforcement, some research measurements and the continuation of SNAP benefits.

A large trade deal comprised of 11 nations became official on Sunday, December 30th after years of back-and-forth talks. A Straits Times Dot Com article says the first six countries to ratify the pact are now enjoying steep cuts in tariffs.

Consumers in countries like Singapore and Japan will benefit from the pact, now called the Comprehensive and Progress Agreement for Trans-Pacific Partnership or CP-TPP. For example, a Japanese retailer has already cut the price of Australian beef at its supermarkets.

Australia’s Prime Minister, Simon Birmingham, says the opportunities for his country are extensive. “They range from more Victorian wine and cheese being enjoyed on the slopes of Canada to more New South Wales prime beef being served up in Japanese restaurants.”

Singapore’s Trade and Industry Minister says the country’s businesses will enjoy a lot more access to markets across the region. In a statement, the Minister says, “We’re looking forward to the rest of the participants ratifying the agreement so the full force of the pact can go into effect.”

The trade deal was led into existence by Japan. It contains all but just 22 of the more than 1,000 original provisions in place before the U.S. pulled out of the agreement in the early days of the Trump Presidency.

President Donald Trump took to Twitter to talk about a recent phone call with Chinese President Xi Jinping. The president noted that the two had what he called a “long and very good call,” saying that a possible deal between the two nations is making good progress.

A Reuters article says it’s been a rough 2018 for the world economy as the trade war between the two largest economies has disrupted the flow of hundreds of billions of dollars’ worth of goods. Trump and XI agreed to a 90-day truce that began on December 1st, while they attempt to negotiate a deal that would bring months of escalating tensions to an end.

“Just had a long and very good call with President Xi of China,” Trump said on Twitter. “Deal is moving along very well. If made, it will be very comprehensive, covering all areas, subjects, and points of dispute. Big progress being made!”

Chinese state media also reported the two had a phone conversation. Xi was quoted as saying teams from both countries are working to implement a consensus reached with Trump in Argentina. The Chinese Ministry says the countries have endured storms in their relationship before, but also say strong ties are important to both economies and to ensuring stability in the global economy.

Farm Service Agency offices are officially shut down as of the close of business on Friday, December 28th. What does that mean for the second round of Market Facilitation Payments?

A DTN report says producers who have already certified their 2018 production acres with FSA will continue to get their payments. For those who weren’t able to get the certification completed, they will have to wait until the government shutdown is over. Up until last Friday, farmers were able to apply for the payments without having finished harvest.

While official signup was scheduled to end on January 15th, farmers are still able to certify their 2018 production until May 1st. USDA isn’t completely halted and several services are ongoing despite the shutdown. A USDA news release says, “Certain activities will remain ongoing because they’re related to law enforcement, protecting life and property, or financed through other funding mechanisms.

If the shutdown continues, the number of employees exempted from the shutdown will decrease. As funding for certain activities lessens, those activities will decrease.” Continuing services include meat, processed egg, and poultry inspection services. SNAP benefits are still going out to eligible households in January.