Saturday, December 14, 2019

US China Trade Phase I


US Tariffs on Chinese Imports will remain in effect.  Planned increases in Tariffs will be tabled. China will agree to restrictions on intellectual property, subsidies, dumping and currency manipulation. China will open its market to US agricultural imports and US financial services.

The primary beneficiaries of the Phase I agreement includes US farmers and pork producers, who are due to receive large orders from China, because of crop losses in China due to disease in crops and pigs.

Soybean prices topped out at $17.39/bu on 9/12/12 prompting a rush to plant soybeans creating an oversupply. Soybeans bottomed out at $9.02 on 5/6/19.

Pork prices topped out at $0.92 cents/lb on 5/15/19. Pork prices fell to $0.60/lb on 12/13/19.

Phase I also covers mechanism to confirm and enforce fair Chinese trade practices and opening China to US financial services companies.

Norb Leahy, Dunwoody GA Tea Party Leader

No comments: