Under 'phase one' trade deal, China to double agricultural buys: Sonny Perdue
'It's a great day for American agriculture'
American agricultural sales to China will see a $40 to $50 billion boost as a result of the first phase of the U.S.-China trade agreement, Secretary of Agriculture Sonny Perdue told FOX Business' Stuart Varney.
Agriculture will make up roughly 25 percent of the overall $200 billion worth of U.S. goods the communist country agreed to buy from the U.S, "essentially double" what they have ever bought before, according to Perdue.
"It's a great day for American agriculture," he said. "President Trump came in and determined to reset this trade deficit relationship. This phase one agreement is exactly doing that."
US-CHINA PHASE ONE TRADE DEAL: WHAT BEIJING HAS AGREED TO BUY
The lumber and hardwood industry, which is included under agriculture, will also benefit from the new agreement after feeling the pains of retaliatory Chinese tariffs, Perdue said.
In addition to agricultural buys, Beijing has agreed to buy $40 billion in services, $50 billion in energy and at least $75 billion in manufacturing goods form the U.S. They have also agreed to stop their theft of American intellectual property and currency manipulation.
(John Roark/The Idaho Post-Register via AP, File)
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The agreement also "very unique" in including a unilateral enforcement mechanism, according to Perdue, however, he did not provide details on how the mechanism will function.
In this agreement, President Trump has delivered on his objective of resetting the deficit in the trade relationship between the U.S. and China, Perdue argued.
FOX Business’ Jonathan Garber, Edward Lawrence and R.N. White contributed to this article.