China is proposing additional purchases of U.S. agriculture products of $30 billion a year in trade talks with the United States. Bloomberg reports the offer would be on top of pre-trade war levels and continue for an undefined period of time.
Agriculture Secretary Sonny Perdue told reporters Thursday it was “premature” to comment on the proposal, adding he didn’t want to raise expectations. But, if an agreement is reached, Perdue says the U.S. structural reforms can “recover markets very, very quickly.” The proposal is part of the talks between trade officials from the U.S. and China taking place in Washington, D.C. this week.
In response, Arlan Suderman of INTL FCStone, expressed caution, noting “China will say what needs to be said to get a deal, but the key component will be in the verification and enforcement.” The talks face a March 1 deadline, although President Trump has recently suggested he would consider extending the deadline.