At this time last year, we were looking at a lot of uncertainty with the trade picture. Uncertainty with China was certainly at the top of our minds. Not far behind that was the uncertainty with the future of a proposed United States ? Mexico ? Canada Agreement (USMCA), and even after that was a little uncertainty with Japanese trade in the wake of the U.S. pulling out of the Trans-Pacific Partnership. Now, all three of those questions have been answered. We have phase-one trade deals with Japan and China, but we also have signed off on the USMCA pact. All we need is for Canada to follow through on its expected ratification.
So, what?s next?
The U.S. Soybean Export Council (USSEC) is looking at the future with much more optimism. A future where trade questions have been answered. It?s now time to roll up our sleeves and see the benefits of these deals.
Audio: Full Interview with U.S.Soybean Export Council CEO Jim Sutter
Jim Sutter is the CEO of the USSEC. He says it was by blind luck that he happened to be in China the day after we signed the Phase-One trade deal with them.
Sutter says despite the current issues with Coronavirus, he expects the U.S. ag sector to see the benefits of this trade deal as soon as is possible. He also says it is too early for farmers to be impatient about the number of purchases being made. Historically, this isn?t usually the time when China is in the market for our soybeans. They have committed to purchasing $40 billion in Ag goods, this year. They don?t have to buy it all this week. It is only March. We have a lot of ?year? left to go.
When it comes to the soybean marketplace, we always must be watching what brazil has going on. They are our biggest global competitor for soybean exports. Brazil is making a concerted effort to beef up its infrastructure. This should be of great concern to the United States, as our infrastructure needs repairs and upgrades. Sutter says the USSEC is working hard to keep showcasing why American beans are the better bet when other countries are looking to make purchases. Sustainability is becoming a larger piece of the marketplace for purchasers.
While there was much focus on China, Canada, Mexico, and Japan, there were more markets that USSEC was looking to build or strengthen. Sutter talks about where else in the world we have seen market expansion and growth. Egypt and Pakistan might be places that will surprise you.
Consumers around the world are realizing that U.S. soybeans can fill more protein needs around the world. Especially in places like India, where people are more protein deficient.
To learn more about the work the U.S. Soybean Export Council is doing, visit their website.
