Trade war with China: Donald Trump wants to reassure agricultural producers – 15/05/2019



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In times of war, you must seduce the allies. This seems to be the tactic of Donald Trump, who in the last hours made statements looking for rebadure the big exporters of pork and soy, American producers who are in the first line of battle of the trade war between United States and China.

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"Our formidable patriotic peasants will be part of large beneficiaries "What's happening today," tweeted Trump Tuesday, a day after the announcement of Chinese retaliation against tariff increases imposed Friday by the United States.

"We hope that China will do us the honor of continuing to buy our great agricultural products, but if that does not happen, your country will make up the difference on the basis of a high Chinese purchase", he finished.

Our great farmer patriots will be one of the greatest beneficiaries of what is happening now. Hopefully China will do the honor to continue to buy our excellent agricultural product, the best, but if your country makes up the difference on the basis of a very high purchase in China ……

– Donald J. Trump (@realDonaldTrump) May 14, 2019

American agriculture exports a lot. And the rural world, which is generally considered a bulwark for the president, has been the target of retaliation since last year, not only from Beijing, but also from the European Union, Canada and Mexico.

For the moment, many producers they remain faithful Trump but "the others are not so sure," according to statements made at the AFP agency by William Rodger, spokesman for American Farm Bureau Federation, the leading union of American agriculture.

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"We do not have any concrete numbers telling us exactly the strength of the support or the opposition, but our feeling is that most farmers still support the presidentbecause they adhere to a lot of their policies, "he explained.

Sid Ready, a producer from the state of Nebraska, laments the trade war but understands it. "I think farmers are resilient enough and we have to tolerate" this situation "which in the long run will be worth it," he added.

Profits that collapse

But Rodger admits that the patience of producers has limits, given that his income has not stopped falling for six years because of global overproduction.

Data from the Department of Agriculture indicate that revenues rose from a record $ 123,400 million in 2013 to $ 92,000 million in 2014. Last year, they were only 63.1 billion dollars.

At a time when farmers in the center of the country are trying to get out of floods that have damaged their crops or directly prevented the crop, tariffs will be useless.

Donald Trump and Xi Jinping. / AFP

Donald Trump and Xi Jinping. / AFP

The federation that brings together the soybean producers (ASA) also supports "in general the objectives of the administration" of Trump but criticize their procedures.

Affiliates of the entity are informed "frustrated" by the inability of negotiators The Americans and the Chinese must reach compromises and are convinced that the task ahead of the parties is now threatened.

"Soybean producers do not want to be the collateral victims of an endless trade war," said Davie Stephens, president of the ASA, and said that It took more than 40 years to build the soybean market in China.

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Many fear that their Chinese customers, who bought a third of the US soybeans before the conflict, will be referred to other producers, especially Brazil.

The longer the conflict goes on, "it will be more and more difficult for me to refer," said Stephens.

If that does not happen, the government will buy the unsold soybeans to China thanks to the money generated by customs duties.

Last week, Trump raised the possibility that these acquired products could be distributed later. between poor countries ignore trade distortions.

Washington also considers other helpers to its producers.

Already in July, $ 12,000 million had been allocated to compensate the victims of the loss of markets. Through several programs, US farmers receive about $ 20 billion a year d & # 39; help.

The US pork industry is one of the most affected by the United States' trade war with China. / AP

The US pork industry is one of the most affected by the United States' trade war with China. / AP

The lobby of the Pork Industry (NPPC) celebrated "President Trump's help proposal".

"We are willing to work with the Ministry of Agriculture to facilitate pork exports as food aid," said NPPC President David Herring.

Exports of pork currently account for 26% of production and China is a major destination country.

"Do you want to know something?" Trump asked the press, adding: "We always win".

Source: AFP

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