agricultural trade

May is World Trade Month, a time set aside to acknowledge and reflect on the importance of global trade. But here at USDA, you could say that every month is “Trade Month” because few industries depend more upon – and benefit more from – trade than American agriculture.

Since December 2014, when the United States and Cuba announced the intention to restore diplomatic ties for the first time in more than half a century, the U.S. has taken steps to ease restrictions on trade, remittances, and travel to Cuba. The actions have generated a wave of enthusiasm about the economic opportunities that a more normal relationship between the two countries could create.

A recent report by the Economic Research Service (ERS) considers potential impacts of more normal commercial ties between the two countries on bilateral agricultural trade.

This post is part of the Science Tuesday feature series on the USDA blog. Check back each week as we showcase stories and news from USDA’s rich science and research portfolio.

China is often noted for its dominant export presence in the world market. The ubiquitous “Made in China” label, found on everything from pens to smart phones has made China’s export prowess acutely visible and at times overshadowed the other side of the country’s trade relationship with the world. But in recent years, China’s potential as a significant market has drawn increasing attention.

A new Economic Research Service (ERS) report examines China’s emergence as a major importer of agricultural products over the past decade. Between 2000 and 2013, China’s agricultural imports grew from US$ 10 billion to about US$ 123 billion. The surge in imports has been driven by rising incomes and changing consumer preferences as well as growing demand for industrial raw materials. While bulk commodities such as soybeans and cotton remain predominant in China’s agricultural imports, consumer preferences and increased purchasing power have broadened the scope of these imports. As a result, imports of processed and consumer-oriented products like meats, dairy, wine, and nuts are increasingly showing up in Chinese markets.