Chinese Firms Request Exemptions From Tariffs On US Ag Products

First rumored late last week, Chinese state media now reports that Chinese firms are asking for tariff exemptions to buy U.S. ag products. Several Chinese companies want to purchase U.S. ag products and have applied for exemptions from the duties imposed on them by Beijing, state media reported.

The filed exemptions will now be heard by a panel of experts from the government, Xinhua reported Sunday. No companies or products were detailed.

The report noted President Trump's promise to suspend imposition of new tariffs on Chinese good and allow U.S. firms to sell products to relevant Chinese companies,” a likely reference to telecom giant Huawei.

US Presses Dispute Settlement Transparency at WTO

The U.S. urged fellow World Trade Organization (WTO) members to voluntarily increase transparency in the dispute settlement process, in a long statement delivered during the July 22 meeting of the WTO Dispute Settlement Body (DSB).

The issue of transparency is "critical for the legitimacy of the WTO," the U.S. said. It urged other members to follow the lead taken by the it, European Union (EU), Australia, Japan and others and voluntarily make their dispute settlement hearings and submissions public.

Nothing in WTO rules prevents members from increasing dispute settlement transparency, so "members cannot defend the lack of transparency on this basis," the U.S. remarked.

"The continued lack of transparency is simply untenable and threatens to further erode public support for and, ultimately the viability of, this system that members profess to support," the U.S. concluded. It pressed fellow members to "immediately take steps in each dispute in which it is participating to request to make its statements publicly observable and to make its written submissions publicly available."

Still No EU/U.S. Trade Talks a Year Later

Politico says it’s been almost a year since the U.S. and the European Union struck a temporary truce in transatlantic trade tensions. However, there seems to be little left in the new phase of trade relations as no trade talks have started. EU trade boss Cecilia Malmstrom has said the U.S. will likely slap retaliatory tariffs on $25 billion worth of European imports. It’s part of a dispute that began because of airline subsidies. Washington has also started an investigation into a digital services tax in France. Several EU officials are also warning that President Trump will soon carry out a longstanding threat to impose auto tariffs, possibly as soon as November. The EU Commission’s second-highest ranking trade official will be in Washington through today (Tuesday) for meetings with Deputy U.S. Trade Representative Jeff Gerrish and other key players in the Washington trade community. Earlier this year, Trump had agreed to hold off on his plan to impose new tariffs on European Union imports while the two sides worked to avoid a full-blown trade war. In announcing the cease-fire, the two sides said they had agreed to remove all non-auto tariffs, increase cooperation on energy purchases, as well as work together to help reform the World Trade Organization.

New Zealand Pushing for Bilateral Trade Deal with the U.S.

The United States doesn’t seem to be as interested in trade deals with most of the Asia-Pacific region. The Washington Post says those words come directly from New Zealand’s Prime Minister, Jacinda (Ja-SIN-dah) Ardern (AR-dern), who spoke last week about trade with America. Ardern also expressed her concerns about China’s growing influence in the region. Ardern spoke with her counterpart from Australia to talk about greater regional cooperation. She says, “There has been a view recently that the United States hasn’t given our region the same level of attention it’s given to others. That’s becoming a concern for both New Zealand and Australia.” Arden’s comments come as her country pushes for a free-trade deal with the United States. Last week, the New Zealand Deputy Prime Minister made a speech in Washington D.C. and pushed for a new trade deal. Winston Peters says, “New Zealand has a real concern about the lack of U.S. trade agreements with the Indo-Pacific region.” Australia has had a free-trade agreement with the United States that dates back to 2005.

Chinese Buyers Seek Tariff Exemptions for Purchasing U.S. Farm Goods

Bloomberg says some Chinese companies are applying for U.S. tariff exemptions as they inquire about the possibility of buying U.S. agricultural goods. That announcement comes over a week after President Donald Trump had complained about China not increasing its purchases of U.S. products. The exemption applications will be evaluated by experts that are appointed by the Customs Tariff Commission. Last week, Trump said once again that he could impose additional tariffs on Chinese imports because China wasn’t buying the large volumes of U.S. agricultural goods that he claims Chinese President Xi (Zhee) promised to buy. The two leaders then agreed to a truce in their endless trade conflict after talks had collapsed in May. A release from the official Chinese news agency (Xinhua) says, “In order to meet the needs of Chinese consumers, Chinese enterprises are willing to continue importing certain agricultural products from the U.S. that are marketable in China.” Chinese authorities told the news agency that they’re “hopeful” that the U.S. will meet China halfway and “earnestly implement its commitments.”

U.S. Ethanol Plants Expected to Cut Output

In the coming weeks ahead, U.S. ethanol plants will sharply cut down on their output. Reuters says it’s due to a steep rise in Midwest corn prices and the U.S-China trade dispute, which have both led to weak margins and oversupply. Most U.S. ethanol production takes place in the Corn Belt. The margins to produce ethanol in that region have fallen to a four-year seasonal low, while ethanol inventories haven’t been this high in nine years. Industry sources told Reuters that the glut in ethanol means inevitable cuts, especially as corn prices are making production costs even more expensive. That could ultimately boost fuel prices. Josh Bailey, CEO of Eco-Energy, which markets and distributes ethanol, says, “Plants have exhausted all resources and I think we will start seeing some real cuts in production.” He says most producers are losing money on every gallon of ethanol they produce because of the weak margins. Producers have been fighting with deteriorating market conditions for the past year. Pacific idled parts of its plant in Aurora, Nebraska, late last year and has no near-term plans for a restart. Green Plains agreed to sell three of its ethanol plants to Valero, as well as suspended its quarterly dividend.

More African Swine Fever Shows Up in Bulgaria

African Swine Fever continues its march across the globe. Over the weekend, U.S. News Dot Com says Bulgaria reported an outbreak of African Swine Fever at a breeding farm for pigs in the northeast part of the country. A spokeswoman for the National Food Safety Authority says, “All pigs on the holding, about 17,000 animals, will be culled.” It may not stop with just that farm, either. All pigs in a three-kilometer quarantine zone established around the farm may also be culled as well. Bulgaria has stepped up its efforts to prevent the spread of deadly African Swine Fever into its national herds after reporting more than 30 cases of the disease in several regions of the country earlier this month, including areas around the border with Romania. ASF is a highly contagious disease that affects domestic pigs as well as wild boar. It does not affect human health.