Title

The Case for Healthy U.S.‐China Agricultural Trade Relations despite Deglobalization Pressures

Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

10-13-2020

Journal or Book Title

Applied Economic Perspectives and Policy

DOI

10.1002/aepp.13115

Abstract

The COVID‐19 pandemic is crippling the global economy and heightening distrust and political disagreements among major countries. Furthermore, ongoing deglobalization efforts taken by firms and countries are fueling the rise of economic nationalism. A prime example is the possible decoupling of US–China economic and trade relations, which the ongoing trade war has already significantly disrupted. This paper analyzes the impacts of COVID‐19 on US agricultural exports to China, especially the added delays and uncertainty regarding China's food imports meeting the US–China phase one trade deal target. I present the views of US farmers and the general public toward China and argue that healthy US–China agricultural trade relations are not only critical for both countries but welcomed by US farmers. I also discuss the possible rise in nontariff barriers following the pandemic as well as trade policies that are increasingly intertwined with political tensions. Finally, I discuss how the US–China phase one trade deal could possibly lead to a more balanced bilateral agricultural trade portfolio with greater share of protein and retail food products.

JEL Classification

F13, F52, F60, Q17, Q18

Comments

This is a working paper of an article published as Zhang, Wendong. "The Case for Healthy US‐China Agricultural Trade Relations Despite Deglobalization Pressures." Applied Economic Perspectives and Policy (2020). doi: 10.1002/aepp.13115. Posted with permission.

Copyright Owner

Agricultural & Applied Economics Association

Language

en

File Format

application/pdf

Published Version

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