context: The US trade war will impact domestic farmers and consumers alike—but here the country's leading ag policy advisor reiterates commitment to ag trade liberalisation. The timing of his full-page interview to coincide with senior officials' traditional summer retreat to Beidaihe suggests this topic is high on Xi's agenda.
Active, consistent and ongoing opening-up of agricultural product trade is the general trend, clear policy orientation and 'correct choice' despite trade tensions, says Han Jun 韩俊 Central Rural Work Leading Group vice director and Ministry of Agriculture and Rural Affairs (MARA) vice minister in People's Daily. China and the US are highly complimentary agricultural trade partners, and a large and growing market awaits US farmers if healthy trade relations can be re-established. Over C¥24 bn of US agricultural products were imported in 2017, accounting for 19.2 percent of domestic agricultural imports by value.
The US has ignored prior consensus and continues to escalate trade tensions, pushing domestic policymakers to introduce countermeasures that have long-term implications for US agricultural product market share. Han further notes
- additional tariffs imposed on US ag products will reduce market share dramatically
- if competitors occupy the market, lost market share will be hard to regain
- if other countries prove to be more reliable suppliers, they may gain market access benefits
- a number of steps have been taken to diversify trade partners and substitute for US soybeans
- domestic aquatic product industry and fruit and vegetable producers may feel the impact of US tariffs
- the US purchased over 15 percent of aquatic product exports by value in 2017
- MARA will support
- finding new buyers for aquatic products
- cracking down on smuggling
- incentivising domestic consumption of aquatic products
- the domestic market has the capacity to absorb additional fruit and vegetable production