The U.S. reached agreement with China to promote market access for American natural gas, financial services and beef that Commerce Secretary Wilbur Ross said was part of a broader effort to begin reshaping the trade relationship between the world’s two largest economies.
But while the world’s two biggest economies agreed to take a number of steps by July 16, it was not clear how much these new deals would increase trade in the near term. “I look forward to the day when we can serve President Trump and President Xi a dry-aged American-made NY strip in Beijing“.
It also suggests still wider room for compromise. In response to a request by the Meat Institute and other industry partners, President Donald Trump raised restoration of USA beef access to China in his summit with Chinese President Xi Jinping last month and has made beef access a reality.
China banned US beef in 2003 after it discovered imported meat contaminated with mad cow disease.
Homegrown cattle herds are not keeping pace with the rising demand in the increasingly prosperous country. By that same deadline, the United States said it would issue a proposed rule to allow Chinese cooked poultry to enter USA markets, Ross told reporters at a briefing.
In return, Chinese cooked chicken will be allowed into the US market and Chinese banks can enter the USA market.
“So this is clearly a concession on China’s part”, he said, adding: “It’s still too early to tell how Sino-US relations will pan out”. Total global beef exports from the U.S. totaled $6.6 billion in 2016, according to the U.S. Meat Export Federation. The deficit with China represented about 60 percent of the country’s total deficit past year of $500.6 billion.
Yet beef exports alone will do little to fill the trade gap. The U.S. brought a case against China on its electronic payment services market in 2010. But the market in China is the most important to the Export Council, he says. The LNG export market is now dominated by Australia, Qatar and Malaysia.
“United States is to publish a proposed rule by July 16, 2017, at the latest, with the United States realizing China poultry exports as soon as possible”, said the release.
Both sides played up the deal.
Most of the contentious issues, like barriers to USA carmakers and product dumping by state-owned heavy industry, have yet to be addressed.
“(They have a) billion people over there”, Miller said.
The United States also signaled that it was eager to export more liquefied natural gas, saying China could negotiate any type of contract with US suppliers.
“Additionally, opening up Chinese markets to US natural gas will help to reduce flaring and create good jobs”. China will issue both bond underwriting and settlement licenses to two qualified US financial institutions as well. “We do not intend to endanger anybody’s health or safety in the USA”, he said.
Of course, the agreement doesn’t mean that US beef will immediately be shipping into China.
The deal the USA and China just struck on agricultural trade, financial services, investment and energy is evidence of President Trump’s increasing willingness to negotiate with Beijing.
“And it rallied again today (Friday) on this news, so it’s having a substantial impact already”, Steinbeisser said. “They have a great professional spirit that’s worth studying”.
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