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China to grant tariff exemptions on 696 Uџ goods, including crude oil, LNG

February 19/2020

MOSCOW (MRC) -- China will grant exemptions on retaliatory duties imposed against 696 US goods, the most substantial tariff relief to be offered so far, as Beijing seeks to fulfill commitments made in its interim trade deal with the United States, reported Reuters.

Tuesday's announcement comes after the Phase 1 trade deal between the two countries took effect on Feb. 14 and is the third round of tariff exemptions China has offered on US goods.

China has committed to boosting its purchases of goods and services from the United States by USD200 billion over two years as part of the agreement, and has already rolled back some additional tariffs on US imports after the deal was signed.

US goods eligible for tariff exemptions include key agricultural and energy products such as pork, beef, soybeans, liquefied natural gas and crude oil, which were subject to extra tariffs imposed during the escalation of the bilateral trade dispute.

The coronavirus epidemic that emerged late last year in China has raised concerns about its ability to meet the purchasing targets, however. Authorities throughout the country imposed major restriction on travel and transportation to curb the spread of the virus, which has killed nearly 1,900 and infected more than 70,000 in the country.

The containment efforts have kept factories shut or operating with drastically reduced staff, hitting production. The public has also been discouraged from leaving their homes or going to public places, also stunting consumption.

White House adviser Larry Kudlow said earlier this month that Chinese President Xi Jinping told US President Donald Trump during a recent call that China will still meet its Phase 1 trade deal purchasing targets.

Beijing's announcement on Tuesday emphasised that Chinese firms will submit applications for tariff exemptions based on market conditions and commercial considerations.

"Unless the state forcefully asks firms to apply for tariff exemption and buy US soybeans, crushers would still go for Brazilian beans, based on market free will," said a trader, adding that Brazilian beans are of good quality and price this year.

Other products subject to exemption on additional tariffs imposed include denatured ethanol and wheat, corn and sorghum. Some medical devices and metals including copper ore and concentrates, copper scrap and aluminium scrap are also subject to exemption.

Pharmaceutical products such as recombinant human insulin and some antibiotics are also among US products eligible for tariff exemptions.

Firms can start submitting their applications on March 2, and any exemptions granted will be valid for one year.

As MRC informed earlier, in H2 2019, tariffs sharply reduced exports of two grades of US polyethylene (PE) amid the ongoing US-China trade dispute. As new US startups brought more high density and linear low density polyethylene production (HDPE and LLDPE) on line, flows into China, the largest global demand center, retreated since China imposed 25% tariffs on those grades in August last year. Those tariffs, like the rest China imposed on the US products, were in response to tariffs the US first imposed on Chinese products.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers.


mrcplast.com
Author:Margaret Volkova
Tags:PE, LLDPE, crude and gaz condensate, HDPE, gas processing, petrochemistry, China, Russia, USA.
Category:General News
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