Cargill Concerned with U.S.-China Trade Strategy
Three days of public hearings on proposed U.S. tariffs begin today
Cargill Inc. is concerned the White House’s strategy to address unfair trade practices with China will not work and could lead to an escalating trade war, according to prepared comments the global grain merchant sent to U.S. Trade Representative Robert Lighthizer.
According to Reuters, the five-page letter, submitted on Friday and made public on Monday, was in response to a request for public comments by Lighthizer’s office over its “Section 301” investigation, which authorizes tariffs in a bid to force changes to Chinese government policies over intellectual property.
“Cargill has significant concerns with the potential enactment of unilateral tariffs and investment restrictions against China, and threats of escalating tariffs,” wrote Devry Boughner Vorwerk, Cargill’s vice president of global corporate affairs.
Global grain marketers such as Cargill and Archer Daniels Midland Co and Bunge Ltd. have seized upon trade tensions between the United States and several of its top export markets, including China, to turn around struggling trading units following one of the toughest years ever for the industry.
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