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Doud discusses ‘Phase One’ enforcement

The chief ag negotiator for U.S. trade, Gregg Doud, says there are strong enforcement mechanisms in the newly inked phase one trade agreement with China.

Doud was asked about enforcement during a meeting with wheat growers in Washington.

“Either country has the right to put tariffs on, commensurate with the value of whatever the problem is—and, importantly, if and when that happens, the other side cannot retaliate,” Doud says. “The goal is not to have that happen—and I will tell you, that’s very sincere on both sides.”

Doud also addressed concerns with a provision stating the Chinese will buy U.S. ag goods “in line with market terms”.  Doud says that revolves around the ag economic term of “seasonality”.

“We don’t expect China to buy U.S. soybeans in the middle of the Brazilian harvest. That’s what that term means,” he says. “The expectation is they have a commitment to make. We expect them to make that, when it’s our time.”

Doud says trade officials from both countries will continue to meet on a regular basis to ensure the terms of the agreement are being met.