Phase One Trade Deal Reached with China
Beijing has decided to cancel plan to impose additional tariffs on U.S. imports on Dec. 15
China and the United States have agreed on the text of a phase one trade deal, and Beijing has decided to cancel an earlier plan to impose additional tariffs on U.S. imports on Dec. 15, senior Chinese government officials said on Friday.
Reuters reports China and the United States are discussing when and where to sign the deal.
China will import more U.S. wheat, rice and corn after the deal, Han Jun, vice minister of agriculture and rural affairs told Reuters.
The specifics and details regarding China’s commitment on U.S. farm goods purchases will be disclosed later, said an official.
The U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are encouraged by the news that the Phase One trade deal that apparently would roll back tariffs and re-open China’s important market for U.S. agricultural imports.
"Earlier this year, China agreed to new policies related to agricultural tariff rate quotas (TRQ), including a 9.6 million metric ton reduced tariff TRQ for wheat imports," the two groups said in a joint statement. "China had imported as much as 1.65 million metric tons of U.S. wheat in marketing year 2016/17 and an additional 866,000 metric tons in 2017/18 before implementing retaliatory tariffs in March 2018.
"We also believe that China’s flour millers and growing baking industry would welcome the opportunity to purchase high-quality U.S. wheat classes again," the statement concluded.