Daily Management Review

Additional Tariffs On US Pork And Soybean To Be Exempted By China: Xinhua


Additional Tariffs On US Pork And Soybean To Be Exempted By China: Xinhua
Additional import tariffs on some agricultural products from the United States will be exempted by China as a part of the grueling trade war between the two countries, claimed a report by China's official Xinhua News Agency on Friday. Earlier in the week, China had announced exemption of additional import tariffs on 16 US products while the US had postponed by imposition of additional tariffs on some Chinese goods by a couple of weeks.
Earlier, China had also announced purchasing of more US farm products. Analysts see these measures and relaxations by both the parties a s gesture of goodwill before the trade representatives of the two countries are set to have a fresh round of face to face meeting on a possible trade agreement next month in Washington. It has been more than a year that the trade war between the two countries have been going on in an escalatory manner which has roiled global financial markets, slowed down global trade and threatened to push the global economy into a recession.
In July 2018, additional tariffs 25 per cent on US agricultural products including soybeans and pork had been imposed by China. And on September 1, China further raised tariffs on pork by another 10 per cent and on soybeans by another 5 per cent.
"China supports relevant enterprises buying certain amounts of soybeans, pork and other agricultural products from today in accordance with market principles and WTO rules," Xinhua said. The report added that additional tariffs on those items would be excluded by the Customs Tariff Commission of China's State Council.
Xinhua reported, citing unnamed authorities that China has "broad prospects" for importing high-quality U.S. agricultural goods.
"It is hoped that the U.S. will be true to its words and fulfill its promise to create favorable conditions for cooperation in agricultural areas between the two countries," the report said.
Om Thursday, at least 10 boatloads of US soybeans was bought by Chinese companies before the announcement of additional tariff exemptions. This is the most notable buying of US farm products by China since June last year.
According to reports, meeting between lower ranked officials of the US and China is scheduled to take place in Washington next week as a prelude to the high level talks between the trade representatives of the two countries in at the beginning of October. On Thursday, US president Donald Trump said that he would prefer to strike a comprehensive trade deal with China but also did not rule out the possibility of the two countries arriving at an interim trade pact.