The United States and China announced they had reached a trade consensus on the heels of Chinese President Xi Jinping’s visit to Washington, D.C. earlier this week.
As part of the talks, the two sides established a “30 for 30” framework set to reduce tariffs by $30 billion in agricultural and other non-sensitive products from both countries.
Both countries enumerated a list of products to be considered for import through “reduced tariff treatment.” Cotton was among the products explicitly named by the U.S.-China Board of Trade in this official listing. Other agricultural commodities listed include corn, wheat, sorghum, meat, barley and oats.
The framework stopped short of identifying exactly how much the Chinese tariff on U.S. cotton would be reduced. It also failed to establish a timeline for when the tariff reductions may be implemented. Still, the National Cotton Council and others expressed gratitude that progress had been made on a trade deal with China, which has traditionally been the biggest export destination for American cotton.
“Efforts to reduce trade barriers and create opportunities for increased demand are positive steps for U.S. cotton,” said NCC Chairman Nathan Reed. “We look forward to continued efforts that support expanded market access and policies that strengthen the competitiveness of U.S. cotton in the global marketplace.”
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