Home / Commodities / Freight News / China’s revision of tariff quota rules to open export opportunities for US wheat: US Wheat Associates

China’s revision of tariff quota rules to open export opportunities for US wheat: US Wheat Associates

US Wheat Associates said late Wednesday that the recently modified tariff rate quota rules by China for wheat, among other grains, has left US farmers optimistic of the opportunity to supply wheat to the Asian country.

The tariff rate quota changes and the need for quality wheat supplies may also make China a significant wheat importer in 2020, the US Wheat Associates said in a report released late Wednesday.

Upon entry to the World Trade Organization in 2001, China had established a 9.64 million mt tariff rate quota for wheat, but the annual quantity was never completely filled despite conducive world wheat prices and market conditions.

The US had moved WTO against China stating that the latter was administering the tariff rate quota of grains, including wheat, in a manner that limited opportunities for US farmers to export competitively-priced and high-quality grains to customers in China.

In April, WTO ruled in favor of the US and China agreed to comply with the ruling by December 2019.

Recently, China announced new norms on tariff rate quota stating that the goal for both the state and the non-state portions of the tariff rate quota be fully utilized so long as market conditions allow it.

Other changes include the allowance for more state-owned entities to apply for tariff rate quota allocations and for non-state-owned entities to also apply for the portion that was previously reserved for the state, the association said.

If the changes are implemented and Chinese millers respond to market signals, most of the quota should be used, it added.

The net result would be China becoming a top world wheat importer, even as they have adequate domestic wheat stocks on hand.

It also opens many opportunities for the US to allow its customers in China access to lower costs and wheat with specialized end-use applications.
Source: Platts

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping