China is the largest importer of soybeans in the world and is the biggest export market for U.S. soybeans. U.S. soy represents more than 35% of China’s soy imports, and one in three rows of beans grown in the U.S. is shipped to China to fill that great demand.

After the devastating trade war in 2018, the China Phase One deal was instrumental in providing relief from the tit-for-tat, retaliatory tariffs levied on U.S. soybean imports by China in 2018, and that reprieve—while not permanent—has been beneficial for U.S. soybean growers.

Despite the waiver process created by the Phase One agreement, ASA remains concerned about the ongoing effects of Section 301 tariffs on the trade environment. While the waiver process is functional and resulted in near record levels of exports in the 2020/21MY, the waiver process is not guaranteed by China and could change at any time, resulting in elevated tariff levels that would again significantly impact U.S. exports.

The outlook for U.S.-China relations is unclear, and our global competitors are aware of this situation. ASA understands that there are myriad geopolitical issues facing the U.S. when it comes to negotiating with Beijing, and we are supportive of the U.S. government finding a long-term solution to these longstanding issues.

However, U.S. soybean growers need predictability and certainty that we will retain market access in China. We support a long-term solution to U.S. – China relations that is more predictable and stable.