The US and China entered into an agreement on January 15th 2020 as part of the phase one trade deal that will help calm the waters in the earlier escalation of the trade dispute between the worlds two largest economies.
One of the major components of the phase one trade deal was to have large agricultural purchases from US producers. The agricultural purchases by China are to be increased by approximately 32 billion over the next two years. The increase is to be on top of the regular agricultural purchases based on 2017 US export numbers. The increase of purchases will take place over the next two years.
The U.S. Pecan Growers Council based in Tifton, Georgia has spent the last decade developing the China market with great success. Countless pecan growers have spent many man hours on the ground in the country working with nut processors, chefs and food retailers and wholesalers, educating them on uses of pecans and the nutritional benefits of pecans.
The American pecan growers were so effective that they eventually developed the Chinese market into the single largest pecan buyer in the world. When the trade war between China and the US ensued pecan exports dropped significantly. The U.S. Pecan Growers Council has continued to work in the China market and monitor the situation.
Last week the U.S. Pecan Growers Council released a statement to the industry showing that Chinese importers will now be able to apply for tariff reduction on pecans being imported into China that are of US origin. Ms. Janice Dees, executive director of the USPGC, released a statement with instructions for US pecan exporter’s to work with their Chinese importers to allow them to apply for the tariff reduction. The Chinese importer will apply for the tariff reduction with the Chinese government.
This is a positive step forward for agricultural producers here in the US as many US pecan farmers have been hit hard by the trade dispute.