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    US National Cotton Association: The First Phase Of Sino US Agreement Brings Hope To American Cotton.

    2020/1/17 11:57:00 0

    The First Phase Of Sino US AssociationThe United States Cotton

    The US National Cotton Federation (NCC) believes that the signing of the first stage trade agreement between China and the US may provide an urgent boost for us cotton exports.

    NCC said the first phase of the agreement includes a chapter on agriculture. China's plan to buy American products started at least $40 billion a year starting in 2020. However, because the details of specific commodities have not yet been released, the overall impact on cotton is still uncertain.

    Mike Tate Tate, President of the Alabama cotton producer, who attended the signing ceremony at the White House, said: "although we welcome the first stage and hope for the potential to increase sales to China in the future, American cotton producers are still facing a challenging economic climate" NCC Mike. Therefore, we encourage President Trump and the US Department of agriculture to complete the third installment of MFP payment as soon as possible.

    Tate is referring to the government's $16 billion trade aid through the market facilitation plan to help alleviate the adverse impact of China's tariff increase. He said the aid from the US Department of agriculture was very timely because the economic health of the US cotton industry is deteriorating and China's market share is losing to Brazil and Australia. The first batch of MFP payments was made in August last year, and the second payment was in November.

    "Since the middle of 2018, trade disputes between the United States and China have been the focus of the cotton market," Tait said. "Due to China's 25% tariff on the US cotton trade, the international cotton price is still far below the pre controversy level. That is why cancelling these tariffs should be a high priority for the future dialogue between the two countries. "
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