Ten months after signing the U.S.-China Phase-One Trade Agreement, the China Department of Animal and Plant Quarantine under the General Administration of Customs has agreed to 37 inspection protocols. This belated action will facilitate trade with the U.S. although it is now clear that China will not fulfill its obligations with respect to the designated value of agricultural commodities and other goods in 2020.
Based on 2017 import levels it was agreed that China would purchase U.S. products to an additional value of $200 billion within two years of signing the Phase-One agreement. According to the U.S. Census Bureau, China purchased 3.4 million tons of U.S. soybeans in October double the quantity recorded for October 2019 in addition to 1.63 million tons of U.S. crude oil representing a record for the month.
The time taken to negotiate the protocols confirms the adage that “the devil is in the details”.