The World Trade Organization today sided with the U.S. in its complaint that China has not lived up to pledges it made nearly twenty years ago to buy billions of dollars of wheat, rice and corn through tariff rate quotas.
If American almond, citrus, pork, apple and dairy farmers want any chance of regaining their markets in China, Mexico and Canada, U.S. steel and aluminum tariffs will likely have to be lifted. The problem, however, is the threat of cheap foreign metal flooding the U.S. market is now as high as ever.
U.S. negotiators head to China this week to resume face-to-face trade talks, and the Senate is expected to consider a long-stalled disaster aid bill amid demands to expand it to include assistance for losses from the Midwest flooding.
The USDA announced Friday that China is making a significant purchase of U.S. corn after years of deteriorating trade, spurring hope that the trade talks between the two countries are producing real progress that could have lasting effects.
Trade negotiations between the U.S. and China are likely in their final weeks, but that’s no guarantee the trade war between the two countries will end any time soon, U.S. Trade Representative Robert Lighthizer told lawmakers Tuesday.
China may agree to buy more U.S. agriculture commodities and lift onerous trade barriers in the ongoing talks, but unless negotiators can agree on an effective way to make sure the Chinese live up to their promises, any final deal would be worthless.