Workers stack empty shipping containers for storage at Wando Welch Terminal operated by the South Carolina Ports Authority in Mount Pleasant, South Carolina, US May 10, 2018. Picture taken May 10, 2018.  Reuters
World

China, US agree tariff cuts on $60b of goods including agriculture, household items

Reuters

China and the United States have agreed to cut tariffs on $60 billion worth of goods traded between the two countries, covering products ranging from US corn and other agricultural goods to Chinese household appliances and toys.

Under the US-China Board of Trade, each country has recommended $30 billion worth of non-sensitive goods for more favourable tariff treatment, US Trade Representative Jamieson Greer said in a statement on Sunday.

For the United States, the arrangement would improve market access for about 30% of its exports to China, Greer said.

The tariff cuts and an extension of the trade truce were among the key outcomes of the second summit this year between Chinese President Xi Jinping and US President Donald Trump, held in Washington last week.

China plans to reduce tariffs on a range of US agricultural products, including corn, wheat, sorghum, meat, dairy products, vegetable oils and meals. Soybeans were not included on the list.

Beijing will also look to lower tariffs on US fish and seafood, logs and wood products, cosmetics and medical devices.

The United States, meanwhile, plans to cut reciprocal tariffs on Chinese goods including small household appliances such as coffee makers and toasters, tableware, blankets and bed linen. The list also covers toys, fireworks, artificial flowers, Christmas tree lights and other holiday decorations, as well as children's car seats.

Trade truce extended

China's Commerce Ministry said Monday that a two-month extension of the trade truce through January 10, 2027, would give both sides more time to assess their existing arrangements and discuss further economic and trade measures.

The extension would also provide a "relatively stable and predictable policy environment" for businesses, the ministry said.

The two countries will hold regular discussions on investment opportunities and barriers, policy transparency and business concerns.

Agriculture and coal

China's selection of products for tariff cuts is expected to help Beijing meet a US commitment that it buy $17 billion worth of agricultural goods. China has already resumed large-scale purchases of US soybeans under a deal to buy 25 million tonnes annually.

The two countries will establish an agriculture working group under their trade council, with its first meeting scheduled before the end of the year to discuss market access and regulations.

The White House said the summit also produced an agreement for China to import 10 million tonnes of US coal annually in 2027 and 2028, equivalent to about 2% of China's annual coal imports.

Liquefied natural gas and oil were not included in the arrangement.

China's Commerce Ministry said US coal would supplement China's domestic supply while providing economic benefits and employment for the US coal industry.

AI, financial firms and flights

On artificial intelligence, China and the United States agreed to establish a communication channel for AI-related incidents and hold a follow-up dialogue by the end of November.

China will also review applications from foreign financial services institutions, including US-backed firms, to conduct business and open branches in the country.

The two sides will continue discussions on increasing direct flights between China and the United States.

The cart, the café, and the mayor

No hidden agenda behind Boeing deal: State Minister Kobir

BNP leader accused of leading attack at Ashulia madrasa amid dispute over a Trust

Proposed cyber law won't be used to repress journalists: Salahuddin

Bangladesh fall 1-0 to Singapore, suffer second straight defeat in ASEAN Cup