Update from Yuan and Associates on US Ag Purchase Halt and Status of Tariff Exemptions on Cotton

>  China’s Purchases of US Ag Products: Suspended

The spokesperson of Ministry of Commerce (MOFCOM) said on August 6th, 2019 that China will suspend the tariff exemptions for US ag products purchases for deals made after August 3rd, and so Chinese enterprises have suspended the purchase. The announcement not only indicates that SOEs will follow the instruction but also sends signals to private sector to reconsider purchase decisions. China reiterated that US accusations that it hasn’t yet begun buying US agricultural products are groundless. National Development and Reform Commission (NDRC) explained and listed specific trade numbers on August 5th, and that since the Osaka meeting China had started to purchase ag products from US. Specifically, for cotton, China has purchased 25,000 tons from US recently.

>  Tariff Exemption: On hold but not rejected yet

According to our communication with China Cotton Association (CCA) today, the application remains status quo. Right now, no news is good news – as China did not stop the review of application or reject it already, which means 1) the review clearly ties with the political consideration; and 2) China leaves room for recovery of ag trade once the negotiation is back on track. 

Chinese authorities feel the US has adopted the strategy of suppressing China and use the trade war as an approach, while China hopes to “agree with disagree” by renegotiating trade terms.  China’s agreements on purchasing of ag products from the US has been used as a tool to show good political wills and keep the trade talks on the right track to avoid further escalation.

More Advocacy Issues

Reconciliation Package Update

September 14th, 2021

See the update below for a comprehensive review of the reconciliation process. Update Here

Read More

On August 11th, ACSA leaders including Buddy Allen of American Cotton Shippers Association, Michael Symonanis of Allenberg Cotton Co., Donna Lemm of IMC Companies, and Neely Mallory of Mallory Alexander International Logistics participated in a Federal Maritime Commission Memphis Supply Chain Stakeholder Meeting led by Commissioner Rebecca Dye. Over 100 stakeholders participated in the meeting […]

Read More

Yesterday, ACSA co-signed a letter to Representatives John Garamendi (D-CA) and Dusty Johnson (R-SD) endorsing the Ocean Shipping Reform Act of 2021 (OSRA21). The Act focuses on unreasonable detention and demurrage charges, and carrier rejection of U.S. export cargo. We believe that addressing these concerns will assist U.S. exports such as cotton to remain competitive […]

Read More

On July 23rd, Representatives Jim Costa, Salud Carbajal, Jimmy Panetta, Tom O’Halleran, John Garamendi, and Ann Kirkpatrick wrote a letter to Secretary Vilsack asking him to assistant cotton merchandisers who have experienced significant losses due to the COVID-19 pandemic. The letter states that not only did cotton experience a huge downturn in consumption during the […]

Read More

Yesterday, Representative David Scott (D-GA), Chairman of the House Committee on Agriculture, Representative Sanford Bishop (D-GA), Chairman of the Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, and Senator Raphael Warnock (D-GA), the sole cotton state Democrat on the Senate Committee on Agriculture, Nutrition, and Forestry wrote a letter to Secretary […]

Read More

Yesterday, the House Transportation Subcommittee on Coast Guard and Maritime Transportation held a hearing entitled “Impacts of Shipping Container Shortages, Delays, and Increased Demand on the North American Supply Chain.”  The hearing featured two panels: the first panel included Federal Maritime Commission (FMC or Commission) Chairman Daniel Maffei and Commissioner Rebecca Dye, and the second […]

Read More