The United States and China agreed to extend the trade deal they signed in October last year until Nov. and to begin negotiations on tariff cuts worth more than $30 billion (about 45 trillion won). In particular, most-favored-nation rates or lower could apply to items of mutual interest. In addition, the two countries agreed to expand the opening of the agricultural market, resume imports of U.S. beef, ease controls on rare earth exports, and purchase Boeing aircraft.
China's Ministry of Commerce announced on the morning of the 20th on its website the results of the Korea-based U.S.-China trade talks held on the 12th to 13th and the Beijing summit from the 13th to 15th. The agreement centers on: ▲ extension of the Kuala Lumpur agreement to Oct. 2025 ▲ discussion of a framework for mutual tariff cuts worth $30 billion ▲ expanded market access for agricultural and fishery products and easing of non-tariff barriers ▲ resumption of approvals for U.S. beef ▲ promotion of cooperation on rare earths ▲ introduction of 200 Boeing aircraft.
According to the announcement, the United States and China will defer until Nov. 10 this year the implementation period for measures agreed in Kuala Lumpur ahead of the Busan summit in October last year. At that time, the two countries agreed to cut the "fentanyl tariff" on China to 10 percent, to defer imposing an additional 24 percent tariff on China and Section 301 measures, and to halt China's retaliatory steps accordingly.
First, the two countries agreed to discuss a framework for equivalent tariff cuts on products of the same scale. The size is at least $30 billion each, and most-favored-nation rates or lower could apply to mutually interesting products. The ministry said, "Going forward, the level of U.S. tariffs on China should not exceed the Kuala Lumpur agreement level," adding, "We also hope to create favorable conditions for expanding economic and trade cooperation between the two countries by further eliminating unilateral tariffs on China through follow-up negotiations."
Agricultural trade will also expand. The two countries formed a series of positive common understandings in pushing to resolve non-tariff barriers and market access issues for some agricultural products and, in principle, agreed to include the related products in the mutual tariff cut framework.
Specifically, the United States will lift automatic detention measures on Chinese dairy products and three seafood items. It will allow exports to the United States of Chinese cultivated-soil bonsai, recognize non-outbreak areas for highly pathogenic avian influenza (AI) in Shandong Province, China, and speed up reviews of applications to remove Chinese corporations from import alert blacklists.
China will resume registration of U.S. beef corporations, lift highly pathogenic avian influenza restrictions on some U.S. states, and resume imports of poultry products from the relevant states. The ministry said, "Some commitments have now been implemented as scheduled," adding, "We hope to create good conditions for deepening cooperation with the United States in agriculture and promoting agricultural trade."
Controls on rare earth exports were also discussed. The ministry said, "(Regarding rare earth exports) we agreed to jointly study ways to address mutual reasonable and lawful concerns." It added, "Together with the United States, we are willing to create good conditions to promote mutually beneficial cooperation between the two countries' corporations and to ensure the safety and stability of global industrial and supply chains."
In addition, China will introduce 200 Boeing aircraft from the United States, and the United States will guarantee the supply of engines and parts to China.