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Lighthizer discusses China’s ’40 to 50 billion dollar’ commitment on ag products

The phase one trade deal calls for China to purchase 40 to 50 billion dollars of U.S. ag products in each of the next two years. That’s nearly double what they were buying previously and some analysts have questioned how the Chinese will reach that level.

U.S. Trade Representative Robert Lighthizer was asked about it an interview with Fox Business.

“Twenty-four billion dollars is the base from 2017. That’s what we had at the high-water mark, before all of this recent change,” Lighthizer said. “In addition to that, China has agreed to buy 32 billion dollars worth of products over the next two years. So that would get you to 40 billion (per year). And they are striving to take an additional 5 billion dollars.”

“We’re very excited about it. That’s just about doubling our ag sales. It’s going to be good for farmers across the board—and, by the way, it’s going to be good for China. The United States has the best agricultural products. We have the best prices. So we’re really excited about that part.”

Lighthizer did not discuss specific commodities the Chinese will be buying.  He said the agreement will also eliminate agricultural trade barriers and is “totally enforceable”.