In this file:

 

·         China cuts tariffs on $75 billion of U.S. imports in trade truce

… The tax rate on… pork and fish was cut from 10 percent to 5 percent, effective Feb. 14…

 

·         China Cuts Tariffs on $75 Billion in U.S. Goods. That Was the Easy Part.

… That truce most likely will not last long, however, if China does not carry through with the part of the deal Mr. Trump prizes most: a promise to buy about $200 billion in goods from the United States over the next two years… 

 

·         Ag Secretary warns US markets to be patient if China cannot uphold trade agreements during virus outbreak

The US Agriculture Secretary has said that the US would have to be tolerant if the fast-spreading coronavirus impairs China's ability to increase purchases of American farm products under the countries' recently signed trade deal.

 

·         China likely considering disaster clause in Phase 1 deal with U.S. -Global Times

… an unnamed Chinese trade expert close to the government as saying a decision on launching a consultation with the United States on the disaster clause is unlikely until the end of the first quarter…

 

 

 

China cuts tariffs on $75 billion of U.S. imports in trade truce

“We hope to work with the United States toward the final elimination of all tariff increases,” said a Ministry of Finance statement.

 

By Associated Press

via NBC News - Feb. 6, 2020

 

BEIJING — China cut tariffs on $75 billion of U.S. imports including soybeans, pork and auto parts Thursday in a trade truce with Washington while Beijing struggles with a costly virus outbreak.

 

The cuts follow last month's signing of a “Phase 1” agreement toward ending a long-running tariff war over Beijing's technology ambitions and trade surplus. Both sides have made conciliatory gestures but the lingering dispute threatens to chill global economic growth.

 

The reductions follow American tariff cuts last month on Chinese goods. There was no indication Beijing altered its own cuts in response to the rising cost of efforts to contain a virus outbreak that have depressed business activity by closing factories, restaurants and shops.

 

“The next steps depend on the development of the Chinese-U.S. economic and trade situation,” said a Ministry of Finance statement. “We hope to work with the United States toward the final elimination of all tariff increases.”

 

The tax rate on some 916 items including soybeans, pork and fish was cut from 10 percent to 5 percent, effective Feb. 14, the ministry said. The rate for 801 items including auto parts will be cut from 5 percent to 2.5 percent...

 

more, including links

https://www.nbcnews.com/news/world/china-cuts-tariffs-75-billion-u-s-imports-trade-truce-n1131286

 

 

China Cuts Tariffs on $75 Billion in U.S. Goods. That Was the Easy Part.

The move signals Beijing’s intention to fulfill a trade pact with Washington, but it must make big purchases of American products while dealing with the coronavirus outbreak.

 

By Carlos Tejada, The New York Times

Feb. 6, 2020

 

HONG KONG — China on Thursday said it would reduce tariffs on $75 billion worth of American-made goods, a step that signals its intention to hold up its end of a trade truce with President Trump despite the coronavirus crisis unfolding largely within its borders.

 

That truce most likely will not last long, however, if China does not carry through with the part of the deal Mr. Trump prizes most: a promise to buy about $200 billion in goods from the United States over the next two years.

 

The move announced on Thursday was widely expected as both sides back down from an increasingly punishing trade war. In January the two governments reached an interim trade pact intended to forestall more tariff increases. The deal represented a freeze on the trade war rather than an end, and the countries have pledged to continue talks.

 

The United States agreed to reduce tariffs on $120 billion worth of Chinese-made goods as part of that deal, and on Thursday, China reciprocated. China’s Ministry of Finance said that it would essentially halve tariffs it placed in September on American cars, crude oil, soybeans and other goods. The tariff cuts would go into effect on Feb. 14.

 

Chinese officials on Thursday said that they still hope to eventually eliminate tariffs enacted by both sides. The trade truce left in place most of the new and increased tariffs on $360 billion in Chinese-made goods that Mr. Trump began enacting in 2018, setting off the trade war between the two economic heavyweights.

 

“The next step of the adjustment depends mainly on the development and changes of the Sino-US economic and trade situation,” the ministry said in a statement. “We hope to work with the United States toward the ultimate elimination of all imposed tariffs.”

 

Before that next step can happen, China may need to prove to the United States that it plans to buy that $200 billion in goods that it promised in January. That could be difficult for Beijing...

 

more, including links

https://www.nytimes.com/2020/02/06/business/china-trade-tariffs-coronavirus.html

 

 

Ag Secretary warns US markets to be patient if China cannot uphold trade agreements during virus outbreak

The US Agriculture Secretary has said that the US would have to be tolerant if the fast-spreading coronavirus impairs China's ability to increase purchases of American farm products under the countries' recently signed trade deal.

 

The Pig Site

6 February 2020

 

China, in the initial deal signed 15 January, promised to buy at least an additional $12.5 billion worth of US farm products in 2020 and at least $19.5 billion in 2021 over the 2017 level of $24 billion.

 

Commodity traders and agricultural economists have questioned whether Beijing will follow through on pledges in the deal to buy $36.5 billion of US agricultural goods in 2020, now that the new coronavirus is threatening China's economic growth.

 

"If they're really trying and it really just blows the economy out of the water, then we would have to be understanding of that," Perdue said, speaking to reporters at a cattle convention in Texas.

 

The United States wants China to live up to its pledges, Perdue said, but trade negotiators could not have anticipated the outbreak.

 

"There are force majeure type of things... that I think you have to be sensitive to," Perdue said.

 

The deal text contains a disaster clause, yet to be formally invoked by Beijing, to allow for delays: "In the event that a natural disaster or other unforeseeable event outside the control of the Parties delays a Party from timely complying with its obligations under this Agreement, the Parties shall consult with each other."

 

China's ability to meet its purchase target was in doubt even before coronavirus outbreak, because rival soybean supplier Brazil is harvesting a massive crop, and a deadly pig disease is reducing Chinese demand for soy used to feed livestock.

 

Hog and cattle futures on the Chicago Mercantile Exchange (CME) declined this week, with traders citing expectations that logistics problems caused by the outbreak would slow the pace of pork shipments to China at a time of plentiful US supplies.

 

"We have been relying on China the last few months, at least, to absorb an ever-increasing portion of the (pork) supply that we have. If that stops, even temporarily, it has a significant impact on the markets," said Altin Kalo, agricultural economist for New Hampshire-based Steiner Consulting...

 

more

https://thepigsite.com/news/2020/02/ag-secretary-warns-us-markets-to-be-patient-if-china-cannot-uphold-trade-agreements-during-virus-outbreak

 

 

China likely considering disaster clause in Phase 1 deal with U.S. -Global Times

 

by Se Young Lee, Reuters

Feb 6, 2020

 

BEIJING, Feb 6 (Reuters) - China is likely considering using a disaster-related clause in its Phase 1 trade deal with the United States due to the coronavirus outbreak that has killed more than 500 and infected tens of thousands, the Global Times reported on Thursday.

 

The Global Times, published by the official People’s Daily newspaper of China’s ruling Communist Party, cited an unnamed Chinese trade expert close to the government as saying a decision on launching a consultation with the United States on the disaster clause is unlikely until the end of the first quarter.

 

(Reporting by Se Young Lee; Editing by Tom Hogue)

 

source url

https://www.reuters.com/article/usa-trade-china-phase-1/china-likely-considering-disaster-clause-in-phase-1-deal-with-u-s-global-times-idUSB9N29N011