In this file:

 

·         Growing Trade War Right Out of 1985 "Negotiating with China" Playbook

… “This really goes back to a playbook, a 1985 document where the U.S. government commissioned a study on how to negotiate with China, and it outlined what to expect out of China,” Suderman said on U.S. Farm Report. “It says it’s very difficult to nail down a deal, because at the end China will try to move the goal post- try to renegotiate some points of it, and if you look at the details of that study, they’re [China] doing exactly what it says”…

 

·         Wanted: U.S. China Trade Deal, Deadline: June 1

… “China has hit back announcing that it would, boost tariffs on $60 billion worth of U.S. goods; that follows the Trump administration’s push ahead with new duties on Chinese goods,” Pro Farmer’s Jim Wiesemeyer told AgriTalk host Chip Flory. “I think this leaves breathing room, because June 1 gives both sides time. Now we can breathe and let's hope the tentatively scheduled next trip to Beijing is well before June 1”…

 

 

 

Growing Trade War Right Out of 1985 "Negotiating with China" Playbook

 

By Tyne Morgan, US Farm Report, Host

via AgWeb - May 13, 2019

 

The escalating trade war between the U.S. and China continues to gain steam. The U.S. announced, and implemented, additional tariffs on Chinese goods last week. China retaliated Monday by imposing additional tariffs on $60 billion worth of U.S. goods.

 

The sharp turn in trade talks came after U.S. officials said China retracted on certain promises it had already made in previous trade talk sessions.

 

While the feud between the U.S. and China is making headlines around the world, Arlan Suderman of INTL FCStone thinks it’s important to remember the talks don’t happen in a vacuum, and both sides have studied each other with great scrutiny.

 

“This really goes back to a playbook, a 1985 document where the U.S. government commissioned a study on how to negotiate with China, and it outlined what to expect out of China,” Suderman said on U.S. Farm Report. “It says it’s very difficult to nail down a deal, because at the end China will try to move the goal post- try to renegotiate some points of it, and if you look at the details of that study, they’re [China] doing exactly what it says.”

 

China’s last-minute attempt to go back on promises it already made was China’s effort to move the goal post, with the U.S. responding by adding more pressure with additional tariffs, according to Suderman

 

“What it [the study] says is you have to have a counter tactic of quote, unquote, ‘throwing them off balance,’ and that’s exactly what he did,” he said. “So, now the ball is in their court.”

 

Despite escalating tensions, China’s Vice Premier traveled to the U.S. as planned last week. The trade talks were brief – only lasting two days – but talks progressed. Now the ball is in China’s court, Suderman said, adding the issue probably won’t be cleared up in a quick manner, which is continuing to pressure commodities.

 

“They’re certainly throwing traders and the word markets off balance, for sure,” said Chip Nellinger, Blue Reef Agri-Marketing, as front-month soybean contracts are now trading in the $7 range.

 

While commodity prices seem to be in a free-fall, the President suggested in a series of tweets he would help offset agricultural losses by using the money made from tariffs to buy commodities from farmers. Suderman thinks this is more than just a way to appease Trump’s strong voting base; it’s also a negotiating tool.

 

“There are a couple messages there from President Trump to President Xi, one is ‘I’m willing to walk off this car lot without buying this car,’” Suderman said.

 

The President donating commodities to developing nations to boost prices one thing. However, buying crops to put into a reserve program is a different scenario, and one that will throw confusion into the market,” he explained.

 

“If you stick it in a reserve, that grain is still there,” said Suderman. “The cash market will strengthen the basis to keep the processors supplied, but the futures market will be limited on rallies because it always knows those bushels are there.”

 

As the two sides ready more tariffs, signals point to a trade battle that could brew for an extended period of time...

 

more, including video report [4:57 min.]

https://www.agweb.com/article/growing-trade-war-right-out-of-1985-negotiating-with-china-playbook/

 

 

Wanted: U.S. China Trade Deal, Deadline: June 1

 

By Anna-Lisa Laca, Farm Journal's Milk, Online and Business Editor

via AgWeb - May 13, 2019

 

News of Chinese retaliatory tariffs spread like wildfire on Monday. The tariffs ranging from 10% to 25% on $60 billion worth of American goods will go into effect June 1, unless an agreement is reached before them.

 

“China has hit back announcing that it would, boost tariffs on $60 billion worth of U.S. goods; that follows the Trump administration’s push ahead with new duties on Chinese goods,” Pro Farmer’s Jim Wiesemeyer told AgriTalk host Chip Flory. “I think this leaves breathing room, because June 1 gives both sides time. Now we can breathe and let's hope the tentatively scheduled next trip to Beijing is well before June 1.”

 

Iowa Senator Chuck Grassley told Flory that a week ago he would have said the deal would have been wrapped up this past weekend, with President Xi and President Trump signing an agreement toward the end of May. While he understands negotiating with China is a challenge, he says an agreement is needed soon.

 

“I sympathize with the president’s waning patience with the Chinese,” he said. “Enough is enough, it's time to strike a strong enforceable deal so farmers, businesses, consumers can get some certainty.”

 

Grassley wants Chinese negotiators to swiftly bring these talks to a close before June 1 to effectively avoid the retaliatory tariffs.

 

“If they went into effect, it ultimately hurts Americans in the U.S. economy,” he said. “We can help both the second largest economy in the world, China's, and the largest economy in the world, America’s, by getting an agreement, and I hope that we can do that.”

 

While nobody can say for certain when the deal will be wrapped up, Wiesemeyer said, signals point to traction.

 

“There were some kernels of compromise in the various comments over the weekend where Trump even suggested that he could possibly lift all the tariffs, if some of this backtracking would be rethought on China's part,” he said. “I do not discount that lightly. That would get both China's leader, Xi Jinping, and President Trump a win-win and boy, that's what both need in this environment right now.”

 

Global Markets Diversify ...

 

more, including audio clips [11:00, 11:59 min.]

https://www.agweb.com/article/wanted-us-china-trade-deal-deadline-june-1/