IDEAS home Printed from https://ideas.repec.org/p/ias/cpaper/20-wp611.html
   My bibliography  Save this paper

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

Author

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 U.S.-China economic and trade relations, which the ongoing trade war has already significantly disrupted. This paper analyzes the impacts of COVID-19 on U.S. agricultural exports to China, especially the added delays and uncertainty on China's food imports meeting the U.S.-China phase one trade deal target. I present the views of U.S. farmers and the general public toward China and argue that healthy U.S.-China agricultural trade relations are not only critical for both countries but welcomed by U.S. farmers. I also discuss the possible rise in non-tariff barriers following the pandemic as well as trade policies that are increasingly intertwined with political tensions. Finally, I discuss how the U.S.-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.

Suggested Citation

  • Wendong Zhang, 2020. "The Case for Healthy U.S.-China Agricultural Trade Relations despite Deglobalization Pressures," Center for Agricultural and Rural Development (CARD) Publications 20-wp611, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:20-wp611
    as

    Download full text from publisher

    File URL: https://www.card.iastate.edu/products/publications/pdf/20wp611.pdf
    File Function: Full Text
    Download Restriction: no

    File URL: https://www.card.iastate.edu/products/publications/synopsis/?p=1313
    File Function: Online Synopsis
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bhaskar, Arathi & Beghin, John C., 2009. "How Coupled Are Decoupled Farm Payments? A Review of the Evidence," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), pages 1-24, April.
    2. Coppess, Jonathan & Schnitkey, Gary & Zulauf, Carl & Swanson, Krista, 2019. "The Market Facilitation Program: A New Direction in Public Agricultural Policy?," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 9(220), November.
    3. Aaditya Mattoo & Robert W Staiger, 2020. "Trade wars: What do they mean? Why are they happening now? What are the costs?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 35(103), pages 561-584.
    4. Li, Minghao & Zhang, Wendong & Hart, Chad, 2018. "What Have We Learned from China’s Past Trade Retaliation Strategies?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 33(2), April.
    5. Zhang, Wendong & Rodriguez, Lulu & Qu, Shuyang, 2019. "3 reasons Midwest farmers hurt by the U.S.-China trade war still support Trump," ISU General Staff Papers 201911040800001688, Iowa State University, Department of Economics.
    6. Schnitkey, Gary & Paulson, Nick & Swanson, Krista & Coppess, Jonathan & Zulauf, Carl, 2019. "The 2019 Market Facilitation Program," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 9(139), July.
    7. Shuyang Qu & Wendong Zhang & Minghao Li & Lulu Rodriguez & Guang Han & Erin Cork & James M. Gbeda, 2019. "Midwest Crop Farmers' Perceptions of the U.S.-China Trade War," Center for Agricultural and Rural Development (CARD) Publications 19-pb26, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    8. Edward J. Balistreri & Chad E. Hart & Dermot J. Hayes & Minghao Li & Lee Schulz & David A. Swenson & Wendong Zhang & John M. Crespi, 2018. "The Impact of the 2018 Trade Disruptions on the Iowa Economy," Center for Agricultural and Rural Development (CARD) Publications 18-pb25, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    9. Edward J. Balistreri & Wendong Zhang & John Beghin, 2020. "The State-level Burden of the Trade War: Interactions between the Market Facilitation Program and Tariffs," Center for Agricultural and Rural Development (CARD) Publications apr-winter-2020-1, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    10. John Christopher Beghin (ed.), 2017. "Nontariff Measures and International Trade," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 10150, August.
    11. Vincent H. Smith & Joseph W. Glauber, 2020. "Trade, policy, and food security," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 159-171, January.
    12. Taylor, Mykel & Zhang, Wendong, 2019. "Training the Next Generation of Extension Economists," ISU General Staff Papers 201901010800001679, Iowa State University, Department of Economics.
    13. Xi He & Dermot J. Hayes & Wendong Zhang, 2021. "China's Agricultural Imports under the Phase One Deal: Is Success Possible?," Center for Agricultural and Rural Development (CARD) Publications 20-pb29, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    14. Zhang, Wendong & Xiong, Tao, 2020. "The coronavirus will delay agricultural export surges promised in trade deal with China," ISU General Staff Papers 202003130700001773, Iowa State University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Haoran & Wan, Xibo & Zhang, Wendong, 2020. "How do Firms Respond to Political Tensions? Evidence from Chinese Food Importers," ISU General Staff Papers 202011250800001118, Iowa State University, Department of Economics.
    2. Li, Haoran & Wan, Xibo & Zhang, Wendong, 2021. "How do Firms Respond to Long-term Political Tensions? Evidence from Chinese Food Importers," ISU General Staff Papers 202106020700001118, Iowa State University, Department of Economics.
    3. repec:ags:aaea22:335958 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John C. Beghin & Heidi Schweizer, 2021. "Agricultural Trade Costs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 500-530, June.
    2. Joseph P. Janzen & Nathan P. Hendricks, 2020. "Are Farmers Made Whole by Trade Aid?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 205-226, June.
    3. Li, Minghao & Balistreri, Edward J. & Zhang, Wendong, 2020. "The U.S.–China trade war: Tariff data and general equilibrium analysis," Journal of Asian Economics, Elsevier, vol. 69(C).
    4. Gary D. Schnitkey & Nicholas D. Paulson & Scott H. Irwin & Jonathan Coppess & Bruce J. Sherrick & Krista J. Swanson & Carl R. Zulauf & Todd Hubbs, 2021. "Coronavirus Impacts on Midwestern Row‐Crop Agriculture," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(1), pages 280-291, March.
    5. Nicholas D. Paulson & Allen M. Featherstone & Joleen C. Hadrich, 2020. "Distribution of Market Facilitation Program Payments and their Financial Impact for Illinois, Kansas, and Minnesota Farms," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 227-244, June.
    6. Coppess, Jonathan & Janzen, Joe & Schnitkey, Gary & Paulson, Nick & Swanson, Krista & Zulauf, Carl, . "Reviewing the Recent Government Accountability Office Report on MFP 2019," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 10(180).
    7. Morgan, Stephen & Arita, Shawn & Beckman, Jayson & Ahsan, Saquib & Russell, Dylan & Jarrell, Philip & Kenner, Bart, 2022. "The Economic Impacts of Retaliatory Tariffs on U.S. Agriculture," USDA Miscellaneous 316892, United States Department of Agriculture.
    8. Jaerim Choi & Sunghun Lim, 2023. "Tariffs, agricultural subsidies, and the 2020 US presidential election," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1149-1175, August.
    9. Munisamy Gopinath, 2021. "Does Trade Policy Uncertainty Affect Agriculture?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 604-618, June.
    10. Wagener, Andreas & Zenker, Juliane, 2018. "Decoupled but not neutral: The effects of stochastic transfers on investment and incomes in rural Thailand," TVSEP Working Papers wp-008, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    11. Vincent Smith & Justus H. H. Wesseler & David Zilberman, 2021. "New Plant Breeding Technologies: An Assessment of the Political Economy of the Regulatory Environment and Implications for Sustainability," Sustainability, MDPI, vol. 13(7), pages 1-18, March.
    12. Johan Swinnen & Alessandro Olper & Senne Vandevelde, 2021. "From unfair prices to unfair trading practices: Political economy, value chains and 21st century agri‐food policy," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 771-788, September.
    13. Anirudh Shingal & Malte Ehrich, 2019. "Trade effects of standards harmonization in the EU: improved access for non-EU partners," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 372, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    14. Adjemian, Michael K. & Smith, Aaron & He, Wendi, 2021. "Estimating the market effect of a trade war: The case of soybean tariffs," Food Policy, Elsevier, vol. 105(C).
    15. Kym Anderson & Ernesto Valenzuela, 2021. "What impact are subsidies and trade barriers abroad having on Australasian and Brazilian agriculture?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 265-290, April.
    16. Kampas, Athanasios & Petsakos, Athanasios & Rozakis, Stelios, 2012. "Price induced irrigation water saving: Unraveling conflicts and synergies between European agricultural and water policies for a Greek Water District," Agricultural Systems, Elsevier, vol. 113(C), pages 28-38.
    17. Elisa Gatto & Alba Marino & Guido Signorino, 2013. "Biodiversity and risk management in agriculture: what do we learn from CAP reforms? A farm-level analysis," ERSA conference papers ersa13p805, European Regional Science Association.
    18. Maria Espinosa & Kamel Louhichi & Angel Perni & Pavel Ciaian, 2020. "EU‐Wide Impacts of the 2013 CAP Direct Payments Reform: A Farm‐Level Analysis," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 695-715, December.
    19. Ignacio del Rosal, 2024. "Maritime connectivity and agricultural trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 153-168, February.
    20. Felbermayr Gabriel & Janeba Eckhard, 2024. "Improving Supply Security: Guidelines and Policy Proposals," Intereconomics: Review of European Economic Policy, Sciendo, vol. 59(3), pages 146-153.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ias:cpaper:20-wp611. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/caiasus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.