There is hope we are in the final days of a trade war with China. Of course, there is plenty of skepticism mixed in with that hope. Have we truly made enough progress? Has there been irreparable damage done? Will the rug be pulled out from under us? Probably the question we hear asked the most is, “How will we enforce a trade deal with China?
While there is optimism a trade deal could be reached, it is perfectly reasonable to ask how to make China abide by it. China’s track record is less than stellar. Just last week, the World Trade Organization (WTO) ruled against China for illegal grain subsidies. Iowa Senator Chuck Grassley commented on the ruling and supported the practice of holding China accountable to the WTO.
Grassley is also concerned about enforcement. He says the U.S. has been “snookered” in the past. The Senator feels any deal to end the trade war must have clear guidelines for enforcement. Grassley says our negotiators are “on top of it.”
To address the concern of whether this trade war will have been worth it in the end, Grassley says he is concerned with how this has played out in the soybean markets. China has been going to other suppliers during this trade war. Grassley says only once a trade deal is completed can we truly see how markets have been affected.
Agriculture is just one part of the puzzle in this vast battle between economies. However, the effects have not been harder in any other sector. Just how big a recovery a trade deal can bring is uncertain. In the view of Trade Ambassador Lighthizer, the damage done by not confronting the Chinese on trade would have been far greater for the American economy.