China Signals that Purchases of US Soybeans Hinge on Tariff Removal

China, the world’s biggest buyer of soybeans, has yet to book any U.S. soybean cargoes from its autumn harvest.

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soybeans
(AgWeb)

The United States should remove what China described as unreasonable tariffs and create conditions to expand bilateral trade, a Chinese commerce ministry spokesperson said on Thursday when asked if China would purchase U.S. soybeans.

China, the world’s biggest buyer of soybeans, has yet to book any U.S. soybean cargoes from its autumn harvest, traders have said, opting for South American supply instead.

U.S. farmers stand to miss out on billions of dollars of soybean sales because of unresolved trade tensions that have halted exports to China.

Senior Chinese trade negotiator Li Chenggang on Monday met political and business leaders from the U.S. Midwest, where the bulk of American soybeans are harvested, signalling that the world’s second-largest economy could purchase some American soybeans ahead of more wide-ranging trade talks.

However, disagreement on technical details appears to be complicating negotiations, with Chinese and U.S. trade officials set to meet again at the U.S. Treasury on Thursday.

“Regarding the trade of soybeans, the United States should take positive action to cancel the relevant unreasonable tariffs to create conditions for expanding bilateral trade,” commerce ministry spokesperson He Yadong told a news conference.

(Reporting by Joe Cash and Ryan WooEditing by Jacqueline Wong and David Goodman)

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