Biden’s recent election to the US presidency brought optimism for a new US trade policy towards its main partners. How the scene of Sino-American relations will change remains to be seen next year.
But how close have the two countries come since Phase 1 of the trade agreement last January? In the first nine months of 2020, US industrial exports to China under Phase 1 of the trade deal reached $ 31.1 billion, according to a recent report by BIMCO. That represents 40% of the $ 78.4 billion agreed on last January.
In September, $ 3.6 billion worth of industrial products were exported from the US to China, down from $ 4.1 billion last August. However, BIMCO states that these numbers are higher than those of 2019 and higher than those of 2017.
But to reach $ 78.4 billion, this bilateral trade will have to increase by a total of 72% in 2020 compared to 2017. In other words, these exports in value should reach $ 15.8 billion for each month from October to December, to achieve the agreement made in January.
BIMCO also points out that trade in energy products and agricultural goods has also lagged far behind the two countries’ Phase 1 commitments. Energy products are down 21.7%, while agricultural commodities should cover 37, 9% more by the end of the year. Combined, the trade of these three categories is increased by 2.1% compared to the corresponding period of 2019.
“BIMCO has always believed that the targets were unattainable, but any additional volume of cargo transported between the two countries is welcome, especially for the dry bulk and energy products market,” said Peter Sand, BIMCO’s Chief Shipping Analyst.