Trade relations between the United States and Europe are improving, German Agriculture Minister Julia Kloeckner said on Saturday, but there are no guarantees that the bloc will buy the amount of soy that Washington expects.
US President Donald Trump and Jean-Claude Juncker, chairman of the European Commission, the European Union's executive body, struck an unexpected deal on Wednesday that put an end to the risk of immediate trade war between the powers.
Under the agreement, it was agreed that the European Union will start importing soybeans "especially from the Midwest" of the United States, as well as liquid natural gas, to "diversify" energy sources, and reduce some industrial tariffs.
Following the talks, Trump highlighted benefits for North American farmers. "The European Union will start, almost immediately, to buy lots of soybeans," he told reporters.
Kloeckner, speaking to Reuters on the fringes of a G20 meeting in Buenos Aires, said the amount of soy that Europe will import will still be determined. "We will be able to do everything that President Trump wants? I do not know. Let's see if this will be the case or not," he said.
EU imports 15m tonnes
The EU is expected to import 15.3 million tonnes of soybeans in the 2018/19 crop, according to data from the US Department of Agriculture on July 12. The US is the second largest exporter of oilseed in the world, behind Brazil.
Following the White House meeting, Trump agreed to refrain from imposing fares on cars as the European Union and the US begin talks over cuts from other trade barriers.
Trump faced criticism from some midwestern US farmers and lawmakers after announcing on Tuesday a $ 12 billion aid package designed as a temporary boost for producers struggling with the growing trade war between the US and China.
China imposed tariffs on agricultural products, including soybeans, after Washington imposed taxes on Chinese goods.
"Many of these farmers are supporters of President Trump, they really felt the pressure. I think this really helped Trump to understand that these tariffs could possibly be harmful, so he went back and we are moving towards a more positive situation," said Kloeckner .
Other European officials also expressed relief after Trump and Juncker agreed to resolve the trade dispute.
