China and US target tariff reductions on agricultural products

CHINA and the US are seeking to roll back tariffs on some agricultural products, as they look to preserve a broader trade truce that was struck last year.

The two nations have agreed in principle to include agricultural products in a reciprocal tariff reduction framework following recent talks, China’s Ministry of Commerce said in a statement on Thursday (Jul 2).

Beijing and Washington have also set a broad goal of expanding two-way farm trade, He Yadong, a spokesperson for the ministry, told reporters at a press briefing, without providing details.

Companies would make purchases based on market conditions and demand, He said, adding that China is willing to work with the US to create favourable conditions for bilateral agricultural trade.

The remarks came after Chinese Foreign Minister Wang Yi had a phone call with US Secretary of State Marco Rubio on Wednesday, with the two sides agreeing to expand areas of cooperation while narrowing the list of disputes and managing risks, according to a statement from China’s foreign ministry.

China has committed to buy at least 25 million tons of US soybeans a year through 2028, and in addition, will purchase at least US$17 billion per year of American agricultural products in 2026 (prorated), 2027, and 2028, according to the White House. 

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However, commitments from Chinese buyers so far only amount to 200,000 tons of beans for the marketing year that begins in September. The higher tariff still in place on American products and political uncertainty have largely kept the private crushers on the sidelines. BLOOMBERG