Beijing and Washington have also set a broader goal of expanding two-way agricultural trade. (Ben Brewer/Bloomberg)
key takeaways:
- China and the US agreed in principle to include agricultural products in a mutual tariff reduction framework.
- China said the two countries aim to expand two-way agricultural trade based on market conditions and demand.
- Chinese soybean purchase commitments so far total 200,000 tonnes for the marketing year starting in September.
China and the United States are seeking to roll back tariffs on some agricultural products as they seek to maintain a comprehensive trade truce reached last year.
China’s commerce ministry said in a statement on July 2 that the two countries have agreed in principle to include agricultural products in the mutual tariff reduction framework following recent talks.
Beijing and Washington have also set a broad goal of expanding two-way agricultural trade, ministry spokesman He Yadong told reporters at a press briefing, without giving details. The spokesperson said companies will make purchases based on market conditions and demand. He said China is willing to work with the US to create favorable conditions for bilateral agricultural trade.
According to a statement from China’s Foreign Ministry, the remarks came after Chinese Foreign Minister Wang Yi had a phone conversation with US Secretary of State Marco Rubio on July 1, during which the two sides agreed to reduce the list of disputes and expand areas of cooperation including managing risks.
According to the White House, China has committed to buying at least 25 million tons of US soybeans per year through 2028, and will also buy at least $17 billion worth of US agricultural products per year in 2026 (proportional), 2027 and 2028.
However, commitments from Chinese buyers so far amount to only 200,000 tonnes of beans for the marketing year starting in September. Still-high tariffs on US products and political uncertainty have largely marginalized private crushers.
