China to Start Granting Tariff Waivers for US Pork, Soybean Imports

China confirmed it will waive some import tariffs on U.S. soybeans and pork after receiving applications from Chinese companies, according to a Dec. 6 report from Xinhua, China’s state-run news agency. China's Customs Tariff Commission will “dedicate a range of goods” to benefit from tariff exemptions, adding that companies will buy the products through “independent negotiation.” Chinese companies can import U.S. soybeans and pork “as they see fit” and “bear the related profits or losses,” Xinhua said. China released its first batch of tariff exemptions on U.S. goods in September, exempting 16 items (see 1909110051). Soon after, China added certain agricultural products, including pork and soybeans, to the list of exempted goods (see 1909130013).

China will likely exempt tariffs for up to 10 million tons of soybeans and an “unknown volume” of pork, according to a Dec. 6 Reuters report. Previously, Chinese importers with duty-free quotas were required to pay tariffs on U.S. pork and soybeans before applying for refunds, which caused delays in unloading shipments, Reuters said. China’s intent to waive some import tariffs will remove that step.

The U.S. and China are “close” to a trade deal, Larry Kudlow, director of the White House National Economic Council, told CNBC Dec. 6. Kudlow said the two sides have made progress since November. “The deal is moving along very well,” he said. “We’re having good discussions with China.” He said negotiators are working on final details. “I can’t speak specifically on the remaining issues, but the reality is [we’re having] constructive talks, almost daily talks. We are, in fact, close.”

Kudlow described the talks as “intense,” saying “there’s so much at stake.” Negotiators are focused on China’s forced technology transfers, he said. “In straight economic terms, when you get right down to it, our family jewels are the technological innovations and inventions and applications,” he said. “And we can't let them steal it.”