Friday, December 13, 2019

China, U.S., reach trade deal

 The United States and China have reached a first-stage trade deal that might sideswipe Canadian wheat exports.

The deal includes a commitment by China to buy wheat, corn and rice from the United States which has so far not been a major supplier of those commodities for China.

Canada pioneered wheat sales to China more than 60 years ago when then-agriculture minister Alvin Hamilton signed a major export deal. At the time Europe and the U.S. would not sell wheat to “Communist China”.

U.S. President Donald Trump said the new deal includes provisions for intellectual property, technology transfer, agriculture, financial services, currency and foreign exchange. 

It also protects Chinese companies doing business in the U.S. and vice versa.

Under the agreement, the U.S.will retain 25 per cent tariffs on about $250 billion of imports and reduce to around 7.5 per cent tariffs imposed on $120 billion of other Chinese imports.
China has agreed to suspend retaliatory tariffs, targeting goods ranging from corn and wheat to U.S.-made vehicles and auto parts, that were due to take effect Sunday.