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China Says It Reached Reciprocal Tariff-Cut Accord With US on Key Goods

Source

Korea Economic Daily

Summary

China said the US and China reached a tentative agreement at their summit on tariff cuts and easing non-tariff barriers.
The two sides said they will use a trade committee to lower tariffs by equal amounts on products each considers important and pursue broader two-way trade, including in agricultural products.
China said it will move ahead with purchases of US-made aircraft, while the US agreed to cooperate to ensure supplies of aircraft engines and parts, though it did not provide details on the specific products subject to tariff cuts or the size of the reductions.

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Easing non-tariff barriers on farm products also discussed

Aircraft purchases, engine supply cooperation on agenda

China said it reached a tentative agreement with the US to cut tariffs and ease non-tariff barriers following recent talks in Seoul and a summit in Beijing.

China’s Commerce Ministry said in a statement posted on its website on May 16 that high-level talks in South Korea on May 13 and the leaders’ summit in Beijing on May 14 yielded progress in economic and trade matters.

A ministry spokesperson said the two sides agreed to continue implementing the outcomes of earlier negotiations and reached a positive consensus on tariff measures. The two countries will discuss tariff cuts on relevant goods through a trade committee and, in principle, agreed to reduce tariffs by equal amounts on products each side considers important.

The two sides also agreed to work on non-tariff barriers and market-access issues in some agricultural sectors.

The US will review dairy and seafood regulations, Chinese bonsai exports to the US, and recognition of avian influenza-free areas in Shandong province, according to the statement. China, for its part, will push to resolve issues involving beef facility registration and poultry exports from some US regions.

The spokesperson added that both sides agreed to expand two-way trade, including in agricultural products, through measures such as reciprocal tariff cuts on a certain range of goods.

The two countries also discussed cooperation in aviation. China will move ahead with purchases of US-made aircraft, while the US will cooperate to ensure supplies of aircraft engines and parts.

China’s statement did not provide details on which products would be subject to tariff cuts, the size of the reductions, or the scale of aircraft purchases.

President Donald Trump visited China on May 13, held a summit and a tea meeting with Chinese President Xi Jinping, and returned home on May 15.

Shin Hyun-bo, Hankyung.com reporter greaterfool@hankyung.com