Tag Archives: China

Following the announcement last week of the “Phase One” US China trade deal Governor Ricketts weighed in on the conversation.

“President Trump’s relentless focus on right-sizing our trade relationship with China is critically important for Nebraska.  Since 2012, China’s imports from Nebraska have declined.  Nebraskans would like to see more consistent trade, and a Phase One agreement creates the opportunity for that to happen.  The U.S. must stay the course on addressing remaining priorities in our national interest in Phase Two.”

Kansas Farm Bureau President Rich Felts also commented on the trade deal,

“Kansas Farm Bureau is pleased to see the United States and China have reached a deal to lessen trade barriers between the two countries. We commend President Trump on this first step in resolving the trade dispute. China is an important market for Kansas farmers and ranchers, and we urge both countries to continue working to create a free and fair market.

I’ve always said Kansas farmers and ranchers want trade, not aid.The commitment from China to make substantial additional purchases of U.S. goods is a positive step in that direction. I know Kansas farmers and ranchers are capable and willing to fulfill whatever the market demands.”

Given that China is likely to increase exports of meat into the country US Meat Export Federation CEO Dan Halstrom was also excited to see the trade deal,

China is the world’s largest and fastest-growing destination for imported red meat, and the U.S. industry is excited about the prospects for expanded opportunities in China. We look forward to learning more details about this Phase One agreement.

U.S. pork and beef products have been subject to burdensome retaliatory duties in China since 2018, and this has made it very difficult for the U.S. industry to capitalize on China’s rapidly growing need for high-quality proteins. But long before retaliatory duties entered the picture, non-tariff barriers were a major, persistent obstacle for U.S. exporters looking to expand their business in China. USMEF thanks the Trump administration for bringing these issues to the forefront in an effort to persuade China to follow international standards for red meat trade.

 

Today the Office of the U.S. Trade Representative (USTR) announced that the United States and China have reached a “Phase One” trade deal. More details are in this USTR press release.

U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued this statement:

China is the world’s largest and fastest-growing destination for imported red meat, and the U.S. industry is excited about the prospects for expanded opportunities in China. We look forward to learning more details about this Phase One agreement.

U.S. pork and beef products have been subject to burdensome retaliatory duties in China since 2018, and this has made it very difficult for the U.S. industry to capitalize on China’s rapidly growing need for high-quality proteins. But long before retaliatory duties entered the picture, non-tariff barriers were a major, persistent obstacle for U.S. exporters looking to expand their business in China. USMEF thanks the Trump administration for bringing these issues to the forefront in an effort to persuade China to follow international standards for red meat trade.

 

WASHINGTON, D.C. — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are encouraged by news today that the United States and China have agreed on the text of a “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 new agricultural tariff rate quotas (TRQ), including a 9.6 million metric ton reduced tariff TRQ for wheat imports. 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.

We want to thank the negotiators in the Office of the U.S. Trade Representative for their dedicated effort and we look forward to learning more details about the agreement.

USMCA.  Higher grain numbers…did the Chinese numbers get faded out?  WASDE report.   Chinese production numbers corn & wheat were higher.  Final USDA Crop Progress report for 2019. Dollar traded lower.  Livestock…USDA cut in exports for beef & pork.  Chinese hog heard is starting to rebuild. Cattle markets & weights.

USMCA Chatter.  Spitting of weather across the Midwest.  Soybeans sharply higher-funds are short.  Trade deal talks of last week makes some worried that a deal with China might not be done.  Extended crop reports…crop report out tomorrow-can we expect any surprises?  Stats Canada Vomitoxin issues, test weight issues on corn.   South America weather.  Price action on the livestock shows we haven’t learned a lot on the trade issues.

In a flurry of meeting with reporters Tuesday in London, President Donald Trump says he has no deadline for finalizing a complete trade deal with China.

China and the U.S. are still working to reach a phase one agreement, with an unofficial deadline of December 15, but an overall agreement may extend beyond the 2020 elections. Trump told reporters, “In some ways, I think it’s better to wait until after the election.”

Trump says China wants to reach an agreement, adding, “the China trade deal is dependent on one thing: Do I want to make it?” Trump claims he is doing “very well” in the talks with China. The President also pointed out the $28 billion in trade aid given to U.S. farmers, with “many billions” leftover, adding about the funds, “that got them whole.”

China wants Trump to remove tariffs in reaching a phase one agreement that also includes $40-$50 billion in purchases of U.S. agricultural products over two years.

Trade negotiations with China continue as the U.S. and China seek to wrap up a phase one agreement, promised two weeks ago. U.S. Commerce Secretary Wilbur Ross told Fox Business News, “the ball is in China’s court,” in an interview Monday. He says the talks are making progress, but described the negotiations as “one step forward, one step backward.”

If nothing happens before December 15, President Donald Trump plans to move forward with a round of tariffs on China, as Ross called the date a “logical deadline.” China wants the U.S. to roll back tariffs in making the agreement. Meanwhile, Ross again confirmed China promised $40-$50 billion of purchases of U.S. ag products as part of the agreement.

China was a near $20 billion market for U.S. agriculture before the trade war began. However, that market has dropped roughly 50 percent since the trade war began, as retaliatory tariffs by China focused on U.S. agricultural products.

Another solid week on the cash cattle.  Could there be a correction headed our way?  Any holiday pressure that might work into.  How are cattle weights.  Holcomb KS plant to start back up this week.  How do you think the market react?  Funds are long.  Some red flags popping up.  Hogs…way to cheap but China is playing a role in that.  10% of corn crop still in the field.  Basis in corn market.   China on again off again.  December 15th…will we see changes before then? Mixed grain markets.

Both the U.S.-Mexico-Canada Agreement and a phase one agreement of a deal between the U.S. and China appear to be slowly edging forward.

The Hagstrom Report quotes House Speaker Nancy Pelosi as saying, “We are within range of a substantially improved agreement for America’s workers. Now, we need to see our progress in writing from the trade representative for a final review.” The Trump Administration says that U.S. Trade Representative Robert Lighthizer will provide a written agreement to Congress this week.

Trump is continuing to push House Democrats to bring the agreement up for a vote. “House Democrats have insisted that hard-working Americans need more from the USMCA than just the same broken NAFTA with better language but no real enforcement,” Pelosi says. “It still left American workers exposed to losing their jobs to Mexico.”

Meanwhile, President Trump says the phase one deal with China is “close.” At the same time, he also says the U.S. is monitoring the situation in Hong Kong. “We’re in the final throes of a very important deal,” Trump says. “It’s going very well, but at the same time we want to see things go well in Hong Kong.” Trump’s comments last week came just hours after a phone call between the Chinese Vice-Premier, USTR Robert Lighthizer, and Treasury Secretary Steven Mnuchin.