China plans to reduce tariffs on imports of more than 700 commodities as of January 1, 2019, the country’s Ministry of Finance announced today.
The tariff cuts cover a variety of edible meals often used for animal feed, including sunfower and canola, while tariffs on U.S. soyabeans remain in place as China and the U.S. negotiate the terms of their trade during the 90-day truce announced at the beginning of December.
Soyabeans producers in the U.S. hope the talks will result in lifting of 25 percent tariff that China continues to impose on U.S. soybean imports. Such a decision would most likely help lift rates in the dry bulk shipping sector, boosting in particular, the tonne-demand.
However, market analysts cited by Reuters, see today’s decision to be preparation for a ” rainy day” and a substitute for soy.
Zero tariffs will be introduced to 94 items, such as fertilizers, iron ore, coal tar and wood pulp. Furthermore, the provisional tariff cuts will be imposed for aircraft engines as well as exports of a wide range of information technology products starting from July 2019.
In line with previously reached bilateral trade pacts, China plans to implement a more favorable import tariffs with New Zealand, Peru, Costa Rica, Switzerland, Iceland, South Korea, Australia and Georgia.
The ministry said that the move supports China’s Belt and Road initiative and free trade.
World Maritime News Staff