China allows first-ever imports of US rice ahead of trade talks
12/28/2018
The world’s largest rice market, China, finally opened for US imports, its national customs body announced on Thursday. The move comes as the world’s two largest economies are set to hold negotiations amid the trade war ceasefire.
Chinese customs said the American rice was cleared for import after going through the required food safety check. The amount of rice Beijing is going to receive from the US was not immediately clear, while China already imports the cereal mostly from Asian countries, including its top exporters Vietnam and Thailand, to fulfill its growing demand.
The move comes after more than decade-long talks on the matter. The two nations inked a deal for US milled rice in 2017. In April, nearly 30 American facilities completed China’s food safety questionnaires and were waiting for a Chinese inspection visit, according to the USA Rice Federation.
“We believe access for US rice can and should be part of the solution in trade talks between China and the United States,” USA Rice COO Bob Cummings said in April.
Despite not ever being allowed, US rice imports to China were targeted with 25 percent additional levies at the height of the trade row, when the Trump administration levied an additional 25 percent import duty on $34 billion worth of Chinese goods.
Opening the market for American rice imports is believed to be another goodwill gesture from Beijing after Chinese and American leaders agreed on a 90-day truce. The US delegation, including some high profile officials, is to head to Beijing in January to hold a new round of talks, according to Bloomberg. Earlier this month, China confirmed that negotiations are to take place in January, but did not elaborate on the exact date.
Since the trade war was paused, Beijing has already bought more than 1.5 million tons of soybeans, resumed buying liquefied gas (LNG) and announced a temporary suspension of additional tariffs on US-produced vehicles and auto parts.
https://www.rt.com/business/447599-china-us-rice-imports/
China allows first-ever U.S. rice imports in 'goodwill gesture' ahead of trade talks
12/28/2018
BEIJING (Reuters) - China has opened the door to imports of rice from the United States for the first time ever in what analysts took to signal a warming of relations between the world’s two biggest economies after a frosty year marked by tensions and tit-for-tat tariffs.
The green light from Chinese customs, indicated in a statement posted on the customs authority’s website on Friday, comes in the run-up to talks between the countries in January after U.S. President Donald Trump and Chinese President Xi Jinping agreed a moratorium on higher tariffs that would affect trade worth hundred of billions of dollars.
It wasn’t immediately clear how much rice China, which sources rice imports from within Asia, might seek to buy from the United States. But the move, which comes after years of talks on the matter, follows pledges from China’s commerce ministry of further U.S. trade openings earlier this week.
As of Dec. 27, imports of brown rice, polished rice and crushed rice from the United States are now permitted, as long as cargoes meet China’s inspection standards and are registered with the United States Department of Agriculture.
“The permission for U.S. rice suggests an improving U.S. and China relationship,” said Cherry Zhang, an agriculture analyst with consultancy JCI. Zhang said she expected any imports would likely be ordered by state-owned companies.
Officials at a government-affiliated think-tank in Beijing said the price of U.S. rice is not competitive, compared with imports from South Asia, and said the move to formally permit import should be interpreted as a goodwill gesture.
China opened its rice market when it joined the World Trade Organization in 2001, but a lack of phytosanitary protocol between China and the United States effectively banned imports, according to trade group USA Rice.
Nonetheless in July, China formally imposed additional tariffs of 25 percent on U.S. rice, even though imports were not permitted at the time.
https://www.reuters.com/article/us-china-usa-trade-rice/china-allows-first-ever-u-s-rice-imports-in-goodwill-gesture-ahead-of-trade-talks-idUSKCN1OR0LB