North Dakota Agriculture Leaders React To Phase One Trade Agreement

North Dakota Agriculture Commissioner Doug Goehring, who was at the signing, says this is a big first step in the right direction.

WASHINGTON — After President Trump signed the Phase One Trade Agreement with China, markets are now being reopen after nearly two years of tariffs.

North Dakota Agriculture Commissioner Doug Goehring, who was at the signing, says this is a big first step in the right direction.

“I really feel there is a lot of value here because it adds stability and predictability. It also adds economic security and it benefits both countries but it puts rules in place,” Goehring says.

The deal will eliminate or lower tariffs for certain goods as well as make China increase overall imports from the U.S by 200 billion dollars over the next two years.

Including an annual total of about 40 billion in agricultural purchases.

“I believe it’s going to benefit manufacture or farmers and ranchers and even some of the service industry. It will be an opportunity to move into the Chinese market where we have never been able to go before,” Goehring said.

North Dakota Farmers Union President Mark Watne says the deal will help move product that has been building up.

“The quicker we can get a country that has the capacity to buy as many soybeans as much as they were buying other products to start those purchases we may start to take away some of the supplies and get the market to understand that there is now a flow for our products that are produced in this country,” Watne said.

Watne says it’s also important China is held accountable and follows the agreement.

“We need to be worried about enforcement because if they choose not to do it, what do we do? Do we just go back to the trade war we are at or is there some other solution and that’s where we are trying to get other countries to support us and get China to be a better actor,” Watne said.

Goehring agrees enforcement is important and says this deal is the first of it’s kind to hold China accountable.

“China is in a tough spot they have to be accountable, we have to have a business climate where fair is fair,” Goehring said.