China Ag AgreementSeptember 14, 2021 8:18 am
American grain maker Archer Daniels Midland Co ADM. N and Cargill Inc [CARG. UL] welcomed the Phase 1 agreement in separate statements, as did seed company Corteva Inc CTVA. N The deal did not reduce tariffs on major U.S. agricultural exports to China, even though Trump said the tariffs would be removed in a Phase 2 deal. Pork is subject to a 68% tariff, although China needs more imports due to the devastating outbreak of a deadly pork disease. Trump and Chinese officials announced the deal in mid-December, signaling early signs of a pause in trade tensions that have rocked financial markets around the world. At one point, Mr. Trump even suggested that the signing could take place in Iowa, which visited Xi, the Chinese president, in 1985 and 2012 as a high-ranking official.
WASHINGTON —With the stroke of a pen, the United States and China on Wednesday formalized what the two sides celebrated as a pioneering new trade deal and paused the nearly two-year trade war between the world`s two largest economies. Others note that the issues that remain on the table will be difficult to resolve and wonder whether it is possible to reach a “phase two” agreement. The agreement also introduces a system for settling trade disputes between the two countries. “This Phase 1 deal from China is proof that President Trump`s negotiating strategy is working. While China has been slow to realize that President Trump is serious, this deal is a great success for the entire economy. This agreement finally opens up the conditions of competition for U.S. agriculture and is a gold mine for U.S. farmers, ranchers and producers,” said U.S.
Secretary of Agriculture Sonny Perdue. “The opportunity to participate in this market in a fairer and more equitable way has more sales that support higher prices and strengthen the rural economy.” After consultation with the parties, the panel was composed on 24 June 2017. Trump said other tariffs would remain in place as the two sides negotiate a “phase two” deal. “Otherwise, we won`t have cards to negotiate with,” he said, adding that if a broader agreement was reached, the remaining rights would be removed. On 18 June 2020, China informed DSB of compliance with this dispute. In this regard, China stated that in October 2019 and February 2020, its authorities issued an opinion on improving the minimum price policy for wheat supply and an opinion on improving the minimum price policy for rice supply. China argued that the minimum guidelines on purchasers` prices (“MPP”) maintained under these opinions are consistent with the DSB`s recommendations and rulings in DS511 and the agreements covered by the WTO. China argued that, through these measures, it had fully implemented the DSB`s recommendations in this dispute.
Trump said talks on a broader deal would begin immediately, but it would likely not be concluded until after the November election. Trump said he would visit China as soon as the two sides try to negotiate a broader deal to resolve unresolved issues, such as complaints that China is subsidizing its companies to give them an unfair advantage over foreign companies.