China, one of the biggest importers of U.S. agricultural products, has imposed punitive tariffs on U.S. agricultural produce which has resulted in the cancellation of several orders.
Three industry groups in the U.S, who represent U.S. grain growers and ethanol producers, have urged U.S. trade officials and the White House to prioritize the industry’s complaints against China, for import duties levied by China on U.S. ethanol and dried grains used for animal feed.
Last month, China had imposed a punitive tariffs on U.S. produced ethanol and DDGS, which lead to the cancellation of several shipments from the United States to China.
In recent years, China has become a big importer of both products.
In a letter dated February 7, drafted by the U.S. Grains Council and the Renewable Fuels Association and Growth Energy, the producers termed China’s punitive tariffs as “protectionist trade barriers” that have harmed U.S. producers.
“China’s recent actions are significantly injuring U.S. ethanol producers and farmers, and undermining the substantial investments our industries have made in developing a cooperative and mutually beneficial trade relationship with China,” reads a portion of the letter.
“We respectfully request that your Administration, and specifically the incoming U.S. Trade Representative, place the Chinese government’s injurious trade barriers against U.S. ethanol and DDGS near the top your China trade agenda.”
This strongly worded letter was one of the most stringent communications the U.S. agriculture industry took ever since Donald Trump assumed the office of the President of the United States.
With the Trump administration walking out of the TPP and vowing to renegotiate NAFTA, both of which have significantly benefitted U.S. agriculture, agricultural companies and farmers have now tried to highlight past trade successes while pledging to work with the White House on better deals in the future.