Aug 31, 2018
WASHINGTON, DC -- Representatives from the U.S. and China concluded two days of negotiations over trade issues last Thursday with no resolution being reached. The meetings wrapped up on the same day the Trump Administration enacted a 25 percent tariff on an additional $16 billion of Chinese imports, bringing the total amount of tariffs levied against Chinese goods to more than $50 billion in an ongoing trade dispute.
In response, China has added several U.S. agricultural products, such as wood pellets and fish meal, to the list of goods subject to the 25 percent retaliatory tariff originally implemented on July 6.
U.S. rice exports are one of the commodities targeted by this initial retaliation from China, despite the fact that China does not currently accept imports of U.S. rice. In a countermeasure, the U.S. has proposed levying a duty of 10 percent on Chinese rice and a range of other imports. USA Rice is asking the Office of the United States Trade Representative (USTR) to raise that number to a reciprocal 25 percent to increase pressure on China to open its markets.
The Chinese delegation, led by Commerce Minister Wang Shouwen, met with a U.S. team headed by Treasury Undersecretary for International Affairs David Malpass. President Trump stated on Monday that he did not expect these mid-level meetings to result in an agreement, and is prepared to continue his hardline toward China even if it means dragging out tariff disputes. Leaders of both nations will convene at the G-20 summit in Buenos Aires at the end of November, a timetable that added urgency to the talks last week.
“The objective is to start meaningful discussions about the trade relationship between China and the United States,” said Michael Rue, California rice producer and chair of the USA Rice Asia Trade Policy Subcommittee. “At this point, that’s all anyone can really say. We don’t know how detailed the negotiations were or what it will mean for rice yet, but we are all hopeful that the Administration’s efforts to improve the conditions of trade with China will be successful.”
Meanwhile, Monday wrapped up six days of hearings at the USTR in Washington on the Trump Administration’s latest round of proposed measures against Chinese imports. Close to 360 business leaders, trade experts, and industry representatives testified on the potential consequences of what is to be the third round of tariffs on Chinese goods. While there was general agreement among those testifying that measures must be taken to curtail China’s unfair trade practices and intellectual property theft, most companies and trade organizations told the administration that tariffs are not a long-term solution.
“Continuing trade disputes with China are likely complicating our long-term efforts to open the Chinese market, and hampering recent progress made after many years of effort by the U.S. rice industry,” said USA Rice President & CEO Betsy Ward.