Trade talks between the U.S. and China resumed Tuesday as both nations seem optimistic to reach an agreement that would mark the end of a tit-for-tat trade war. Mid-level talks are ongoing, with higher-level talks expected Thursday that will include U.S. Trade Representative Robert Lighthizer and Secretary of Commerce, Wilbur Ross.
The two sides “made headway” on “important and difficult” issues last week, according to Lighthizer. An agreement would be welcomed by U.S. agriculture, as China targeted U.S. farm goods throughout the trade war, including soybeans. However, more long-term damage may be lurking.
China has been working to overhaul its agriculture structure in recent years, and a recent policy statement by China announced the nations intent to stimulate its rural economy. The policy statement includes increased farm subsidies and the promotion of increased plantings of soybeans and other oilseeds. The statement is seen as another measure by China to increase domestic production of soybeans to reduce dependence on foreign nations.