News

China exempts ag products from new port fees in trade war move

A commodities consultant says there’s been some good news in the ongoing U.S. / China trade war.

Karl Setzer, partner at Consus Ag Consulting, says both countries have instituted new fees on container vessels unloading at each other’s ports; however, “China exempted ag products. Now we know it’s China, that can change at the drop of a hat. We know that.”  He says, “But right now it doesn’t look as though it’s going to affect the U.S. trade with China. And let’s face it, we really don’t have any trade with China right now on the commodities.”

He tells Brownfield that if China implemented the $56 per metric ton fee, it would result in an additional $1.66 per bushel price hike for importing U.S. soybeans.

“It just does show that if China wanted to buy from us, they wouldn’t face that huge hurdle, and neither would the U.S. exporters.”  He says, “Again, it’s a little bit of a move in the right direction.”

Setzer says if China were to remove the agricultural exemption, it would add yet another challenge for U.S. soybeans trying to enter the Chinese marketplace.   

AUDIO: Karl Setzer – Consus Ag Consulting