U.S.-China Trade Framework Includes Cotton
Cotton is getting some attention in the latest round of U.S.-China trade talks, and California growers have reason to watch.
Cotton is among the agricultural products identified for potential tariff reductions under a new trade framework between the two countries.
The U.S. and China recently released what they're calling their “30-for-30” lists, covering roughly $30 billion in goods in each direction. And this is much bigger than cotton. The list of U.S. goods being considered by China includes a wide range of agricultural products, including dairy and poultry products.
For cotton growers, USDA reported earlier this year that U.S. cotton remained subject to a 10-percent Chinese tariff, adding another hurdle when competing in that market.
National Cotton Council Chairman Nathan Reed pointed specifically to demand, saying efforts to reduce trade barriers and create opportunities for increased demand are positive steps for U.S. cotton.
But nothing has changed yet. These are recommendations, and any future tariff reductions still have to move through each country's respective domestic process.
