The US and China have reached an agreement on a Phase One trade deal that will affect the agriculture food market.
Under the agreement, China has committed to purchasing at least $200 billion in additional US goods and services over the next two years over the amount it purchased in 2017.
The US Trade Representative said that the agreement of increased imports is expected to continue on this trajectory for several years and should contribute to rebalancing the US-China trade relationship.
The deal includes structural reforms and other changes to China’s economic and trade regime, which will support the expansion of US food, agriculture and seafood product exports, according to the US Trade Representative.
Other areas affected include intellectual property, technology transfer, financial services and currency foreign exchange.
According to the office of the US Trade Representative, the US will maintain 25% tariff on approximately $250 billion of Chinese imports, along with 7.5% tariffs on approximately $120 billion of Chinese imports.
The office also said that the multitude of non-tariff barriers to US agriculture and seafood products will be addressed, including for meat, poultry, seafood, rice, dairy, infant formula, horticultural products.
Michael Dykes, president and CEO of the International Dairy Foods Association (IDFA), said: “Over the next decade, China represents a $23 billion market opportunity for US dairy, and it is essential to our dairy producers and companies that we secure a trade deal with China that further levels the playing field for American dairy.
“We are confident that today’s announcement of a phase one deal between the United States and China puts on a path to rebalance the trade relationship between our two nations.”
US Meat Export Federation (USMEF) president and CEO Dan Halstrom said: “China is the world’s largest and fastest-growing destination for imported red meat, and the US industry is excited about the prospects for expanded opportunities in China.”
The US first imposed tariffs on imports from China based on the findings of Section 301 investigation and section 301 will now be modified as part of the recent agreement.
By Emma Upshall
After eight years with Nestlé, François-Xavier Roger, executive vice president and chief financial officer (CFO), has decided to leave the company to pursue new professional challenges, making way for finance boss Anna Manz. Meanwhile, Unilever announced that Graeme Pitkethly, CFO, will retire by the end of May 2024, and the hunt is on for his successor.
International spirits company Bacardi Limited has announced the appointment of Alicia Enciso to its board of directors. Enciso joins with more than 30 years of experience with multinational Fortune 100 Companies in the food and beverage sector with roles as general manager, president, chief marketing officer and e-business officer.
According to Innova Market Insights, when it comes to beverages, consumers are willing to pay more for what they value most, despite rising inflation. Additionally, consumers want brands that respond to their core values and have the benefits they seek, such as sustainability and functional ingredients.