China Trade Deals Should Reduce Trade Deficit: Ross

Recent commitments by China to further open its markets to U.S. exports should begin to show up in balance-of-trade data later this summer, Commerce Secretary Wilbur Ross said in a June 2 statement.“While the overall trade deficit continues to grow, it is too soon for the numbers to reflect the recent deal with China and other actions this administration is taking to level the balance of trade,” Ross wrote, referring to the initial results announced in May of a bilateral 100-day action plan for trade.The trade deficit in goods with China was up 13.8% in April from the same month the previous year to a level of $27.6 billion. Year-to-date, the trade deficit reached $106.5 billion, according to the April 2017 International Trade in Goods and Services monthly data released June 2 by the Department of Commerce.“We look forward to the July 16 deadline which will open up the Chinese market to American beef, liquefied natural gas and other products,” Ross said, citing the end date of the action plan. However, analysts with the U.S.-China Economic Security Review Commission (USCC), said June 2 that even if Beijing and Washington reach agreement in July 2017 on outstanding technical issues, U.S. beef exports may not resume for another year.USCC based its estimate on resuming U.S. beef exports on Brazil's experience with a similar Chinese ban that took over a year to implement. They also cited the lack of a mandatory identification system in the U.S. for tracing the beef from the cattle to the store and the use of growth-enhancing drugs by U.S. ranchers on their cattle, as potential sticking points.