Open, fair trade system crucial for smooth food supply

After many years of rapid growth, serious trade tensions have emerged between the United States and China. Since open trade is key to avoiding significant economic and environmental costs and ensuring food security and nutrition, the ongoing trade conflicts have the potential for disastrous outcomes, as China and the US are key players in global agricultural trade.

US agricultural exports averaged $142 billion per year between 2013 and 2015, accounting for more than 20 percent of production by US farmers and ranchers. For commodities such as soybeans, wheat and cotton, more than half of the production is exported. Last year, for example, US exports to China alone were more than $12 billion for soybeans, $971 million for cotton, $835 million for sorghum, and $237 million for pork.

So, unless the US-China conflicts are resolved, there will be major lose-lose outcomes for both parties - and for agricultural markets across the world.