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

On April 14, 2021, Memphis stakeholders wrote a letter to Chairman Oberman of the Surface Transportation Board expressing the need for assistance in resolving the current inland rail crisis affecting importers, exporters and motor carriers in the area. See the full letter below. Click Here

Read More
 

On March 15, 2021, Mississippi State University published the expected PLC payments for the 2020 year. Please see the link below for more information. Click Here

Read More
 

The link below provides an overview and key takeaways from the Senate Banking Committee hearing to consider Gary Gensler to be a Member of the U.S. Securities and Exchange Commission (SEC). Click Here

Read More
 

The National Cotton Council provided a cotton specific summary of the Quality Loss Adjustment Program and examples. See below. Click Here

Read More
 

Yesterday, the Senate Agriculture Committee held a hearing to consider the nomination of Tom Vilsack to be Secretary of Agriculture. Click below for details from the hearing. Click Here

Read More
 

China Policy and Market Update

January 29th, 2021

In December, China imported 1,629,083 bales (354,691 MT) of cotton, representing an increase of 80.43% month-on-month (m/m), and an increase of 130.9% year-on-year (y/y). The total value was USD $588.82 million, representing an increase of 89.33% m/m, an increase of 117.21% y/y. In 2020, Chinese cotton imports totaled 9,912,346 bales (2,158,159 MT), an increase of […]

Read More