agreements negotiated and signed by the respective heads of state of each country, but which have not yet been ratified by the country`s legislative body. Soybeans and its products are the most marketed agricultural products in the world and account for more than 10% of the total value of the world`s agricultural trade. The United States is the world`s largest producer of soybeans, exporting in three forms: whole beans, flour and oil. Soybean exports from the United States have increased significantly since 2000, with demand for meat and poultry increasing in Europe and Asia. Until 2017, China was the largest importer, but trade tensions between Beijing and Washington led to a sharp drop in U.S. soybean prices, while China instead bought from Brazil and Russia. When the United States and China signed their bilateral trade agreement in Phase 1 in January 2020, soybean oil and soybean oil were added. China is expected to import an additional $32 billion in U.S. agricultural products over the 2020-2021 period, although the coronavirus pandemic has already significantly curbed soybean exports to the United States.34 Similarly, U.S.-China trade agreement provides for faster food security controls for imports to China and faster authorizations for GMOs in China47 In December 2019, China authorized the importation of genetically modified papaya and soybeans from the United States and authorized five genetically modified plants as animal feed the following month.48 45 USMCA, Chapter 28, ustr.gov/sites/default/files/files/agreements/FTA/USMCA/Text/28_Good_Regulatory_Practices.pdf 15 hormones, cows and the new trade agreement What you need to know, CBC News, October 3, 2018, www.cbc.ca/news/canada/usmca-milk-hormones-1.4849423 30 Peter Eavis et al. , “What is in (and not in) the U.S.-China trade agreement,” The New York Times, January 15, 2020, www.nytimes.com/2020/01/15/business/economy/china-trade-deal-text.html?auth=link-dismiss-google1tap Yet in recent years, trade relations between the two countries have been tarnished by deep differences on issues such as agricultural subsidies, intellectual property rights, dairy products and, more recently, tariffs and market access. Much of this struggle has been fought in the World Trade Organization (WTO). But the interests of U.S.
companies, such as dairy companies, continue to pressure Washington and submit petitions against India to the U.S. Trade Representative`s office (USTR) for “missing reasonable and reasonable access to its market.”2 Now the Trump administration wants to go directly and reach a deal with Modi. Given The trade agreements Trump has signed over the past three years with South Korea, China, Canada and Mexico, it is clear that an agreement between the United States and India will be bad news for India`s agricultural sector. 47 Ana Swanson and Keith Bradsher, “What is really in the trade agreement,” the New York Times, October 15, 2019, www.nytimes.com/2019/10/15/business/economy/china-trade-deal.html 5 Keith Good, “US Agricultural Trade Developments: China, the European Union, and India,” Farm Policy News, January 26, 2020, farmpolicynews.illinois.edu/2020/01/u-s-agricultural-trade-developments-china-the-european-union-and-india/ beef and pork, genetically modified food residues and chlorine are very strong reasons to limit imports of American chickens. However, this may not be possible under a free trade agreement between the United States and India. If we look at the agreement between the United States and China, signed in January 2020, a key part of the agreement has been that China has committed to reducing certain health and safety standards.