Due has prospered over the years. Over the

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to many different benefits of trading goods , services, and capital among
various countries across the globe, International trade has prospered over the
years. Over the last half of the 20th century, the benefits of
international trade have been the major driver of growth. The international
trade accounts for a good part of a country’s gross domestic product. Trade is
the major contributor for countries to reduce poverty. Countries have become
prosperous due to international trade and have the power to control the world
economy. For developing countries, international trade is an important source
of revenue. The United States does the most agricultural trade with China,
doing so has changed the economy of the United States in ways people couldnt even

The Chinese market has been an
important factor for the growth of agriculture over the past decade. Only
specific sectors within agriculture have been targeted. Over the past decade,
agricultural exports to China have significantly risen from the United States.

That being said, China is now the fastest growing along with highest value of
exports of the United States farm and food products. China has become the
United States strongest agricultural trading partners competing with Canada,
Japan, and Mexico. China surpassed Canada and is now the top U.S. market and
continues to remain in that position. Chinas share of agricultural exports has
increased significantly. When you consider the overall growth in
agricultural trade, its even larger than you would expect due to the agricultural
exports tripling.

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The U.S. has faced
many challenges with the tremendous expansion of agricultural trade with China.

The United States is a high quality supplier of agriculture and food products,
making the U.S. very desirable to the Chinese consumers. There are many
incentives for both countries to address the issues of the size of the agricultural
trade relationship, along with the agricultural exports which support China’s
food security through trade. Between the two countries positive results have
been achieved during recent negotiations and engagements.

China has policies
that promote agricultural self-sufficiency and protect domestic industries
limiting the U.S. exports. The government policies and productive capabilities
of both countries strongly influence the patterns within the U.S. and China’s agriculture trade. Chinese
agriculture is directed towards a policy of self-sufficiency in a few
commodities such as  wheat, corn, rice,
and pork. The vast majority of the past decades China has been self-sufficient
in these commodities. China has achieved this by yielding the production of
other commodities to the rest of the world while relying on agricultural trade
to obtain their agricultural requirements. A major beneficiary of the trade is
the U.S. soybean market. The U.S. exporters have some hesitation with trading
with China because of China’s lack of regulatory transparency,
inconsistent product review and approval processes, and erratic distribution of
import quotas all distort trade. The United States feels that they are not able
to achieve its full potential in exports because the environment has prevented
it. Expansion Opportunities continue to occur within China’s food and
agricultural markets.

Growth in China’s food consumption is
projected to overtake its domestic output by more than two percent per year resulting
in an improved demand for imports. China is pursuing a lot of regulatory and
economic reforms to bolster its domestic agricultural production and efficiency
in order to address the growing demand for food. These reforms are designed to
be market-oriented and consumer-driven according to Chinese representatives. In
order for the U.S. to avoid unwarranted restrictions with the Chinese on
exports, the U.S. ag stakeholders must be fully engaged. Being fully engaged
with each other, will help encourage policies that are equally useful to the
trade partnership between the two countries.

In the
last couple of years many agricultural goods gained first time market access to
china, this has been significant for the United States total exports. There is
a considerable increase in Chinas imports of grains, cotton, and soybeans, while
the U.S. exports grow tremendously for diary and horticultural goods creating
future opportunities within the consumer oriented products sector. Over the
past 10 years, the United States value of agricultural exports have more than
tripled. Due to the trade partnership being strong between the two countries,
the U.S. ag producers are well placed to capitalize on China’s economic
development and consumer demand into the future. Half of the total value of
U.S. agricultural exports are dominated by soybeans.

In recent years the growth of the U.S. farm exports
to china have plateaued, there are many opportunities for long term growth and
trade expansion in China. Chinas growing middle class and higher incomes have
increased the Chinese ability to diversify their diets and eat protein rich and
more expensive food. The U.S. exports to China have been dominated by bulk
commodities, since china is going through a severe cropland shortage. They will
then process those commodities for domestic consumption or even for export.

has recently had a booming demand for luxury items and processed foods, it has
created so many new opportunities for the United States. Some of the products
that are being demanded are oils, fats, flour, meal, and sweeteners, and
consumer-oriented products such as processed food, eggs, meat, and dairy.

Exports of consumer-oriented products grew 150 percent over the same period. The
U.S. ag markets are very product specific, they have a high concentration in
livestock, cotton and soybeans. Roughly 60 percent of US soybean exports are
traded with China. Over the past few years there have been substantial changes
in the ag trade. Cotton has actually had the largest change over the past 5 or
so years, the market for cotton has been cut nearly in half of what it used to
be. While cotton is being cut in half the tobacco, grain and feed trade exports
have roughly doubled over the same time. While the dairy exports have been increasing
livestock and meat products have stayed relatively the same. China has been the
most consistent and largest buyer of soybeans for several years. China has been
the major market for soybeans. The vast majority of the soybean trade is
purchased for processed soybean products such as oil and meal, the remaining
soybean trade is for the bean itself. Similar to soybeans, china prefers to
purchase the processed corn products over the corn directly. Compared to the
soybean market China has been a relatively small and inconsistent buyer of corn.

China has been a great country to export our agricultural goods to, trading
with them has come with many positive outcomes for the United States.

trade is the reason for increase in the economy and keeping the poverty level
low. International trade has made many countries become prosperous and able to
control the worlds economy. Luckily for the United States we were fortunate
enough to have China be one of our best countries to do trade with. Developing
countries have prospered by having international trade be the most important
source of income.

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