World Agriculture
Developments, trade, data, and topics in world agriculture
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(United States) Reciprocal Tariff Cuts Take Effect; Soybeans Remain ExcludedGlobal Agricultural Watch Issue 1 | Current Observation: United States | October 1, 2026 On September 28, the Ministry of Commerce of China and the White House of the United States simultaneously announced a list of reciprocal tax reductions of about US $30 billion each for "non-sensitive goods", totaling about US $60 billion, and tariffs on more than 90% of goods were reduced to the most-favored-nation tax rate. Corn, wheat, sorghum and other U.S. agricultural products were selected, but soybeans are not on the list and still face a 10% tariff increase. 1. policy background China suspended purchases of U.S. soybeans for nearly five months in June 2025 and resumed in late October. U.S. Department of Agriculture data show that the 2025/26 market annual U.S. soybean exports fell 18.2 percent year-on-year, while shipments to China fell 45 percent to 12.4 million tons. At the end of October 2025, the two sides reached a one-year trade truce in Busan, South Korea, which was originally scheduled to expire on November 10, 2026. In May this year, the White House said China agreed to purchase at least 25 million tons of US beans and at least US $17 billion of US agricultural products annually from 2026 to 2028. On September 24, the heads of state of China and the United States held their second meeting this year in Washington. The economic and trade teams of the two countries subsequently negotiated and reached a consensus on reciprocal tax cuts and the extension of the truce. The Commerce Department said the extension of the truce provided space for subsequent consultations. Key points of 2. list Tax reduction method. The two sides each recommended a list of about US $30 billion. Based on 2024 import data, about 90% of their commodities will no longer be subject to additional tariffs and will be levied at the most-favored-nation tax rate. It is expected to be implemented simultaneously, but no effective time has been announced. According to the Office of the U.S. Trade Representative, this could lead to improved market access for about 30 percent of U.S. exports to China. List of Chinese. More than 1600 commodities are involved, including corn, wheat, sorghum, meat, dairy products, vegetable oil and oil meal (including soybean oil and soybean meal), and tariffs on fish and seafood, logs and wood products, cosmetics, medical devices, etc.; the trade volume of agricultural products and related products in 2024 is about 17 billion US dollars, which is roughly equivalent to China's annual purchase commitment of 17 billion US dollars. Non-seed soybeans are not included, 10% of the tariff is retained, and the combined tax burden after the 3% MFN tariff is about 13%, while Brazilian soybeans are only about 3%. The American Soybean Association (ASA) believes that the elimination of tariffs can enhance the competitiveness of U.S. soybeans. U.S. list and mechanism arrangements. The U.S. list covers Chinese consumer goods such as toys, small appliances, tableware, bedding, holiday decorations, and child safety seats. The two sides will set up a China-US Trade Council to promote "30 billion-to -30 billion" reciprocal tax cuts, and set up an agricultural working group to meet for the first time before the end of the year; the truce will be extended to January 10, 2027; and the energy sector will only involve coal. 3. Influence on China and Observation Points First, the cost of feed grain imports is expected to fall, but the actual pull or limited. After the restoration of the most-favored-nation tax rate for corn, wheat and sorghum, the cost disadvantage of grain sources in the United States has narrowed significantly, while the domestic pig stock has contracted, feed consumption has weakened, and the elasticity of import demand has declined. Second, soybeans remain off the list, and short-term purchases may still be dominated by state-owned channels. China has purchased more than 12 million tons, close to half of its annual commitment. Industry insiders report that the 10% tariff makes it difficult for private crushing enterprises to absorb it. Even if the tariff is abolished, the CIF price of US-Pakistan soybeans is roughly the same (about US $595/ton). Some analysts believe that the soybean will be treated separately, leaving room for China's follow-up consultations. Third, as of July 2026, Brazil accounted for 72.1 percent of China's soybean imports, the logistics and contractual arrangements formed by the abundance of South America have strong inertia, and the global oil and grease pattern will not be quickly reversed. Tax reduction is good for domestic vegetable oil refining and feed processing enterprises to control the cost of raw materials. Follow-up can be observed: whether the first meeting of the Agricultural Working Group before the end of the year touches on soybean tariffs; changes in the pace of Chinese procurement and the participation of state-owned and private enterprises; extension arrangements before the expiration of the truce on January 10, 2027; and planting decisions by U.S. farmers to 2027 the planting season. Source: The official website of the Ministry of Commerce of China, the list of tax reductions published by the White House and the Office of the Trade Representative (USTR); Reuters, NBC News, "World Grain" (World Grain), etc., September 28-30, 2026. Compilation: Secretariat of China Foreign Agricultural Economic Research Association.
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(United States) Soybean Futures Hit a Three-Year High as China Buys the New CropIn late August 2026, the Chicago Board of Trade (CBOT) soybean futures price rose above $12.6 a bushel, once approaching $13, a new high since December 2023. At the same time, the United States Department of Agriculture (USDA) continuously confirmed export sales to China: 488000 tons on August 3, 238000 tons on August 7, 244000 tons on August 12, and 333000 tons on August 26, all of which were delivered in the 2026/27 market year. This means that after the stagnation of procurement in 2025, China's bookings for new US soybeans have restarted. The upward price support comes from both sides of supply and demand. On the demand side, China's procurement volume is obviously large, and state-owned enterprises play a major role in it. On the supply side, USDA's August supply and demand report lowered the U.S. soybean yield to 52.7 bushels per acre in 2026/27, with a production forecast of 4.52 billion bushels. In late August, the excellent and good crop rate dropped from 61% to 60%. In addition, China's main soybean producing areas encountered extreme high temperatures and heavy rainfall during the growing period, threatening quality and yield, which may further push up import dependence. Record production expectations constitute a reverse suppression, limiting the upside of prices. It should be pointed out that China still retains a 10% counter-tariff on U.S. soybeans, and the combined tax burden after the MFN tax rate is significantly higher than that of South American sources, so commercial buying continues to shift to Brazil. The USDA Overseas Agriculture Bureau report shows that Brazil's shipments to China from June to August 2026 hit a record high for the same period, and China's domestic profits are still negative. This means that the current round of U.S. soybean purchases is more of a policy procurement tinge-the market generally links it to the Chinese procurement arrangement disclosed by the U.S. side after the meeting in Kayama in October 2025, but the arrangement has not been formally confirmed by the Chinese side so far, and the pace of implementation has become the biggest uncertainty in the market. There are three follow-up observation points: first, whether the U.S. harvest season output can meet the USDA forecast, second, whether the continuity of China's reserve procurement and tariff adjustment, and third, the progress of Brazil's new planting and its quotation competitiveness. Source: USDA export sales report and August supply and demand report; Chicago Board of Trade quotes; Reuters, August 2026.
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(United States) Agricultural Purchase Deal during the China Visit; China Pledges $17 Billion a YearUS President Trump paid a state visit to China from May 13 to 15. This is the first visit by a US president to China since 2017. The White House released the results list on May 18, and agriculture and agricultural trade have become important results areas of the meeting. According to the contents released by the White House, China has promised to purchase at least US $17 billion of US agricultural products every year in 2026 (converted according to the remaining time after the visit), 2027 and 2028. The commitment is independent of the soybean purchase agreement reached in October 2025. China has also restored the registration of more than 400 U.S. beef companies to China and added some new registrations, restarted the import of poultry products from highly pathogenic avian influenza-free areas identified by the U.S. side, and promised to speed up the handling of non-tariff barriers and markets for some U.S. agricultural products. Access issues. According to the interpretation of the Ministry of Commerce on May 20, China and the United States reached a series of positive consensus on promoting the resolution of non-tariff barriers and market access issues of some agricultural products, and agreed in principle to include relevant products in the framework arrangement of reciprocal tax reduction (each with a scale of US $30 billion or more), and set the guiding goal of expanding two-way trade of agricultural products. The U.S. side promised to promote the lifting of the automatic detention measures for Chinese dairy products and three types of aquatic products exported to the United States, and to accept the experimental export of Chinese media bonsai to the United States. In terms of mechanism construction, the two sides agreed to establish an intergovernmental trade council and an investment council to provide a normalized platform for trade and investment issues, and promote economic and trade consultations from "crisis response" to "institutional management". In addition, the Chinese side will introduce 200 Boeing aircraft in accordance with the principle of commercialization. For Sino-US agricultural trade, this round of consensus has released a signal of easing at both ends of tariff arrangements and market access. China emphasizes that no matter what reason the United States will impose or replace tariffs on China in the future, the level should not exceed the arrangements determined in previous consultations; the actual pace of implementation of relevant procurement commitments and the progress of non-tariff barriers will be the focus of follow-up observation. Source: White House list of results; Xinhua News Agency (interpretation of the Department of Commerce, US and US); Reuters, May 2026.
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(EU) EU adopts EU-Mercosur Agreement agricultural safeguard clauseOn March 5, the Council of the European Union formally adopted the implementing regulations to implement the bilateral guarantee clauses for agricultural products in the EU-Mercosur (Mercosur) partnership agreement and the interim trade agreement. The regulations introduce faster procedures and simpler trigger conditions on the basis of the EU's existing safeguard mechanism: a trigger threshold of 5% of the three-year average import volume of sensitive products is set, the investigation must be completed within 4 months, and temporary measures can be implemented within 21 days in case of emergency; The European Commission will also actively monitor the import of sensitive agricultural products and issue market reports on a regular basis. The negotiation of the EU-Mercosur agreement lasted more than 20 years. A political consensus was reached in December 2024, approved and signed by EU member states on January 9, 2026, and formally signed in Asuncion, Paraguay on January 17. The agreement covers Argentina, Brazil, Paraguay and Uruguay, which together account for about 30% of global GDP and more than 0.7 billion of the population. Hungary voted against, while Austria and Belgium abstained. Agriculture is the most sensitive issue in the agreement. According to the protection arrangement announced by the European Commission, there is a quota of 99000 tons of beef, a preferential tariff of 7.5 (equivalent to about 1.5 per cent of EU beef production), and no zero tariff quota. 180000 tons of poultry meat, with tariffs phased out within 5 years; 450000 tons of ethanol (for chemical purposes only); Tons of rice 60000 tons and honey 45000 tons were reduced in stages. The EU will also set up a 6.3 billion euro safety net to cushion possible market shocks after the agreement enters into force. Imported products must still comply with EU health and food safety standards. The agreement will be temporarily applied after the four countries of the Southern Common Market have completed their domestic ratification. It can enter into force as early as May 1, 2026. The formal entry into force requires the approval of the European Parliament. European farmers are wary of the competitive pressure of low-priced agricultural products in South America, and the actual implementation of the safeguard clause will be the focus of observation. Source: EU Council press release; European Commission; Euractiv, March 2026.
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(Canada) China's anti-dumping investigation on Canadian rapeseed final, tax rate reduced to 5.9 percentOn February 28, the Ministry of Commerce issued an announcement on the final ruling of the anti-dumping investigation on imported rapeseed originating in Canada (No. 14 of 2026), which determined that there was dumping of the products under investigation, substantial damage to China's domestic industry, and there was a causal relationship between dumping and damage. From March 1, 2026, anti-dumping duties will be imposed on imported rapeseed originating in Canada at a rate of 5.9 for a period of 5 years. The case was filed on September 9, 2024, and the preliminary ruling announcement was issued on August 12, 2025, and temporary anti-dumping measures (deposit tax rate 75.8 per cent) were taken from August 14. The final tax rate is significantly lower than the initial level. The Ministry of Commerce said that Canada's reasonable claims were considered within the framework of the rules in the investigation and a ruling was made based on facts and evidence. For the deposit paid during the temporary measures, the excess of the final tax rate will be refunded. In line with the final ruling, China has suspended the 100 per cent anti-discriminatory tariff on rapeseed meal and peas originating in Canada and the 25 per cent tariff on lobsters and crabs from March 1 until the end of 2026. Anti-discriminatory tariffs on rapeseed oil (100 per cent), pork and pork products (25 per cent) and other products are still being implemented. The above arrangement is in line with the preliminary joint arrangement reached between China and Canada in January 2026. Canada estimates that China's comprehensive tax rate (including 9% MFN tax rate) on rapeseed will not be higher than 15%. China and Canada are each other's important agricultural trade partners, and rapeseed is a pillar commodity of Canadian exports to China. The landing of anti-dumping duties and the suspension of tariffs on some categories are regarded by both sides as a landmark progress in the relaxation of bilateral economic and trade relations. Source: Ministry of Commerce Announcement No. 14 of 2026 and answers to reporters' questions; China Daily; Agriculture Canada, February 2026.
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(U. S.) U.S. Supreme Court rules IEEPA tariffs illegal, global tariff system faces revaluationThe U.S. Supreme Court ruled on the "Learning Resources v. Trump" case on February 20, finding 6 to 3 that the "International Emergency Economic Powers Act" (IEEPA) did not grant the president the power to impose tariffs. The ruling noted that the right to tax is a core constitutional power granted to Congress, and that the expression "to regulate… imports" in IEEPA does not constitute a tariff authority. As a result, the two types of tariffs imposed by the Trump administration under IEEPA-the "fentanyl tariff" for Mexico, Canada and China and the "reciprocal tariff" for the world-were found to be illegal and ceased to apply. On the day of the ruling, Trump signed an executive order to "terminate specific tariff actions", demanding that the relevant tariffs be stopped as soon as possible; the US Customs and Border Protection Agency announced that it would stop collecting IEEPA tariffs from 0:00 on February 24. The scale of tariffs previously collected under the law was about more than US $160 billion, and the method and time limit for the refund were not ruled by the Supreme Court. In order to fill the policy gap, the United States immediately changed to Article 122 of the 1974 Trade Law to impose a 10% tariff on global imports, which will be implemented from February 24 for a maximum of 150 days (to July 24). Any extension must be approved by Congress. According to this clause, the tariffs under Article 232 (steel, aluminum, copper, etc.) and Article 301 are not affected by this ruling and continue to be implemented. For agricultural trade, the direct significance of this ruling is that the tariffs imposed on North American neighbors on the grounds of "fentanyl" have been stopped, reducing the cost of agricultural products imported by the United States from Mexico and Canada; however, the continuation of 10% global tariffs has not really subsided. Exporters from all over the world are generally concerned about whether the refund can be landed smoothly and whether the United States will introduce alternative tariff tools within the 150 window. Source: US Supreme Court ruling; DLA Piper, Withers Legal Analysis; Reuters, February 2026.
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(China) China implements safeguard measures on beef imports, three years of country-specific quota managementThe Ministry of Commerce issued an announcement on December 31, 2025, announcing the final ruling on the safeguard measures for imported beef: the increase in the amount of imported beef has caused serious damage to China's domestic industry, and there is a causal relationship between the two. The safeguard measures will be implemented from January 1, 2026 for a period of three years until December 31, 2028. Measures take the form of "country quotas plus quotas plus tariffs. According to the announcement of the Ministry of Commerce, the total quota for imported beef in 2026 is 2.688 million tons, and those that do not exceed the quota shall be subject to the current applicable tariff rate. From the 3rd day when the import volume reaches the specified quantity, a 55% tariff will be imposed on the excess part on the basis of the current tax rate. The measures will be gradually relaxed at fixed intervals during the implementation period. The quota plus tax rate in 2027 and 2028 will be reduced to 45% and 35% respectively. The unused quota of the previous year will not be carried forward to the next year. The safeguard measures shall not apply to beef originating in developing countries (regions) with an import share of no more than 3% and an aggregate share of no more than 9% of such countries. Brazil has the highest share of country quotas, 1.106 million tons, and the United States 164000 tons. During the implementation of the safeguard measures, the special safeguard measures for beef under the China-Australia Free Trade Agreement were suspended. This safeguard measure is aimed at the rapid expansion of imported beef in recent years: China imported 2.87 million tons of beef in 2024, up 73.2 from 2019, with the import share rising from about 20% to about 30%; The import price has been lower than the domestic market price for a long time, resulting in a deep loss in the domestic beef cattle breeding and slaughtering process in 2024 and a decline in the number of breeding cows. Safeguard measures are one of the trade remedy tools permitted by the rules of the World Trade Organization, and this ruling is a phased arrangement aimed at striving for a buffer period for domestic industries. Source: Ministry of Commerce Announcement No. 87 of 2025; Farmers Daily; Shandong Animal Husbandry and Veterinary Bureau, January 2026.
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(U. S.) U.S. dollar meets in Busan, U.S. says China will resume U.S. soybean purchasesOn October 30, the Chinese and US heads of state met in Busan, South Korea, which lasted about 100 minutes. This is the first face-to-face meeting between the two heads of state since the G20 leaders' meeting in Osaka in 2019. After the meeting, the US side disclosed a series of arrangements involving agricultural trade. According to U.S. Treasury Secretary Bethant, China has agreed to purchase 25 million tons of U.S. soybeans a year from 2026 to 2028, and 12 million tons between October 2025 and January 2026. It should be noted that the above figures were unilaterally disclosed by the United States, and China's statement was "expanding trade in agricultural products" without specifying the specific quantity. In terms of tariffs, the United States will reduce the tariff on China for fentanyl reasons from 20% to 10%, and the overall tariff level on China will be lowered accordingly. China announced that it would continue to suspend 24% of the "reciprocal tariff" for one year and suspend rare earth export control measures for one year. The United States suspended the "50% Penetration Rule" and 301 investigation measures in the maritime, logistics and shipbuilding industries for one year. After the news was announced, soybean futures prices on the Chicago Board of Trade rose about 3%, corn and wheat rose simultaneously, and the atmosphere in the agricultural state of the United States was revived. The U.S. Soybean Export Association said farmers are more interested in "the return of market certainty". Since the tariff war escalated in April this year, China has basically stopped purchasing U.S. beans since May. This year, U.S. soybean exports to China once returned to zero. The actual pace of subsequent purchases will be a key indicator to test the quality of this round of easing. Source: AP; Reuters; Xinhua, 30 October 2025.
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(EU) The United States and Europe have reached a 15% tariff agreement, and the EU agricultural community is strongly dissatisfied.U.S. President Trump and European Commission President von der Leyen announced in Turnberry, Scotland, on July 27 that the United States and Europe have reached an agreement on tariffs: the United States will impose a 15% benchmark tariff on the vast majority of EU exports to the United States, replacing the previous threat of 30%; in exchange, the EU promised to expand the purchase of US energy and other products and increase investment in the United States. The agreement's arrangement for agriculture is of particular concern: EU agricultural exports to the United States will be subject to a 15% tariff, and there is almost no exemption arrangement. Steel and aluminum industry 50% tariff remains unchanged, EU wine and spirits are not exempted, France, Italy wine industry reaction is fierce. EU agricultural groups expressed strong dissatisfaction on the same day. The European Fruit and Vegetable Industry Association called the agreement "unilateral and completely asymmetrical"-US agricultural products get tariff-free treatment, while EU exports are subject to high tariffs; agricultural unions criticized the agreement as "at the expense of European farmers". French politicians called the agreement "unbalanced", while Italy demanded further clarification of the exemption for agricultural products. Analysts pointed out that the agreement marks the EU's concession in the transatlantic trade game, and agricultural access has become a bargaining chip. The competitiveness of the EU's Common Agricultural Policy, the income expectations of European farmers, and the implementation of the EU's energy procurement commitments to the United States will continue to be tested in the coming months. Source: US-EU joint statement; Xinhua News Agency; Brussels Times, July 27, 2025.
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(U. S.) U. S.-China tariff war escalates again, U.S. agricultural exports to China blockedAfter the United States announced on April 2 that it would impose "reciprocal tariffs" on its trading partners, including China, the Tariff Commission of the State Council of China issued an announcement on April 4 to counter the system: starting from 12: 01 on April 10, a 34% tariff will be imposed on all imported goods originating in the United States on the basis of the current applicable tariff rate. Overlaid with the 10-15% tariff on about $21 billion of U.S. agricultural products that took effect in March, the cost of U.S. agricultural products entering the Chinese market has risen significantly. Soybeans and sorghum are the most impacted categories in the United States. U.S. agricultural exports to China were $29.25 billion in 2024, down significantly from $42.8 billion in 2022; about half of U.S. soybean exports went to China. China has simultaneously suspended the qualifications of some U.S. companies for sorghum and other products exported to China. The anxiety of the American agricultural community is concentrated. Many industry organizations, such as the American Soybean Association, called on the government to resolve differences through negotiations with China, pointing out that farmers "cannot afford to lose the Chinese market again"; during the last round of trade war, US soybean exports to China shrank sharply, and the government finally had to spend tens of billions of dollars to subsidize farmers. Analysts pointed out that compared with 2018, China's dependence on U.S. agricultural products has declined significantly, and the high yield of South American soybeans has provided China with sufficient alternative sources; while U.S. farmers are also facing the double squeeze of high agricultural costs and low agricultural prices during the same period. The negotiation window and time cost are becoming the key variables in this round of the game. Source: State Council Tariff Commission Bulletin; Reuters; American Soybean Association, April 2025.
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(Argentina) Argentina temporarily lowers export taxes on soybeans, wheat and other agricultural productsThe Argentine government announced on January 23 a temporary reduction in export taxes on major agricultural products. The measures will be implemented from January 27 to June 30 in accordance with Decree No. 2025. This is the latest move by the Millet government to fulfill its campaign promise to cut taxes and deal with drought in agricultural areas and low international food prices. Specific adjustments include: soybean export tax from 33 per cent to 26 per cent, soybean meal and soybean oil from 31 per cent to 24.5 per cent, wheat, corn, barley and sorghum from 12 per cent to 9.5 per cent, sunflower seeds from 7 per cent to 5.5 per cent; and the permanent abolition of export taxes on regional agricultural products such as sugar, cotton, peanuts, rice and leather. Argentina is the world's largest exporter of soybean oil and soybean meal and an important supplier of wheat and corn. Export taxes (locally known as "retenciones") have always been an important source of government revenue and are at the heart of the conflict between agricultural groups and successive governments. This tax cut comes at a time when the peso is under pressure and farmers are holding money to sell. The government hopes to reduce the tax burden to promote sales, speed up the settlement of foreign exchange, and ease the pressure on the balance of payments. The industry has mixed reviews: exporters and farmers welcome the improved cash flow brought about by the lower tax burden, while the financial sector is concerned about the revenue gap. The market is also concerned about the continuation of tax cuts-Argentina's agricultural policy has been adjusted repeatedly in recent years, and farmers' sowing and sales decisions will continue to swing with policy and exchange rate changes. Source: Decree No. 2025 of the Ministry of Economy of Argentina; Economic and Commercial Office of the Chinese Embassy in Argentina; USDA FAS, January 2025.
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(U. S.) Trump re-elected, the U.S. agricultural community fears a repeat of the trade warThe Associated Press calculated on November 6 that Trump won more than 270 electoral votes in the 2024 US general election, defeating Harris to be re-elected president. During the campaign, Trump promised to impose a 10%-20% across-the-board tariff on all imports and an additional 60% tariff on Chinese goods, and fears of a repeat of the trade war in the U.S. agricultural community rose rapidly. China is the largest single export market for U.S. agricultural products. In the 2023/24 marketing year, the United States exported 46.3 million tons of soybeans, of which nearly 25 million tons were exported to China, accounting for 54% of the United States soybean exports, worth about US $13.2 billion. Industry research shows that if China resumes imposing tariffs on U.S. soybeans, U.S. soybean exports to China may be reduced by 14 million -16 million tons per year, a drop of more than half, and Brazil will be the biggest beneficiary. The lessons from the trade war in 2018 are still there: US soybean exports to China once plummeted from about US $14.2 billion to US $3.1 billion, and the US government issued about US $28 billion in agricultural subsidies for this. While congratulating the election, the American Farm Bureau Federation and other agricultural groups urged the new government to complete the new farm bill legislation as soon as possible and properly handle issues such as taxation and labor costs. Soybean futures fell on the Chicago Board of Trade after the election results were announced. Most analysts believe that it will take time for the tariff policy to come to fruition, but the pace of China's purchase of US beans and the production prospects of new season crops in South America will add new uncertainty to the international agricultural product market in 2025. Sources: AP; Reuters; American Soybean Association Industry Report, November 2024.
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(Canada) China launches anti-dumping investigation against Canadian rapeseedThe Ministry of Commerce of China issued Announcement No. 37 of 2024 on September 9, deciding to initiate an anti-dumping investigation on imported rapeseed originating in Canada. The case was filed by the Ministry of Commerce according to its functions and powers. The dumping investigation period is from January 1, 2023 to December 31, 2023, and the industrial damage investigation period is from January 1, 2021 to December 31, 2023. The products involved in the case are classified as 12051090, 12059090 and other tariff numbers. this case is directly related to the escalation of sino-canadian economic and trade friction. On August 26, Canada announced that it would impose a 100 per cent surcharge on Chinese-made electric vehicles from October 1 and a 25 per cent surcharge on Huagang aluminum products from October 15. China has previously made it clear that it will take all necessary measures to safeguard the rights and interests of its enterprises. Rapeseed is one of the most important field crops in Canada, with an annual planting area of more than 21 million acres. The annual output value of the whole industry chain is about 43.7 billion Canadian dollars, supporting about 200000 jobs. China has long been the largest export market for Canadian rapeseed. Canadian industry players are worried about losing the Chinese market. Industry organizations such as the Canadian Rapeseed Council called on the two sides to resolve their differences through dialogue. Analysts pointed out that the direction of the rapeseed case depends on the overall situation of China-Canada and even China-EU economic and trade frictions. Referring to the previous treatment path of Australian barley and wine "double reverse" measures, there is still room for the two sides to reach a solution through consultation during the investigation period. If the friction continues, Canadian farmers may speed up their search for alternative markets such as the European Union and Japan. Source: China's Ministry of Commerce Announcement No. 37, 2024; Reuters; Global Affairs Canada, September 2024.
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(EU) China launches anti-dumping investigation against EU pork and pig by-productsThe Ministry of Commerce of China issued Announcement No. 23 of 2024 on June 17, deciding to initiate an anti-dumping investigation on imports of related pork and pig by-products originating in the European Union. This case should be filed on the basis of the application submitted by the China Animal Husbandry Association on behalf of the domestic industry. The dumping investigation period is from January 1, 2023 to December 31, 2023, and the industry injury investigation period is from January 1, 2020 to December 31, 2023. The products under investigation include fresh, cold and frozen pork, edible pig offal, fat pork, pig fat and pig casings and other by-products, involving multiple tariff numbers. The EU is an important source of imports of pork and pig by-products from China, while Spain, Denmark and the Netherlands are the main exporters to China. The timing of the launch of the case has attracted much attention: the European Union is launching a countervailing investigation into Chinese electric vehicles and is planning to impose tariffs, and public opinion generally regards the pork case as part of China's corresponding countermeasures. Spain is the largest pork exporter to China within the European Union, and the local industry has expressed concerns about losing the Chinese market. According to the procedure, anti-dumping investigations should generally be completed within one year after the filing of the case, and can be extended for six months under special circumstances. The industry believes that the trend of the investigation is closely related to the evolution of the EU's measures on China's electric vehicles, and the progress of China EU economic and trade consultations will directly affect the final handling of the case. Source: China Ministry of Commerce Announcement No. 23, 2024; Reuters, June 17, 2024.
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(Australia) China ends anti-dumping duties on Australian winesThe Ministry of Commerce of China issued Announcement No. 11 of 2024 on March 28. In view of the changes in the relevant wine market in China, it has decided to terminate the imposition of anti-dumping duties on imported wines originating in Australia from March 29, and terminate the anti-dumping duties. Countervailing duties will no longer be levied. The wine trade dispute between China and Australia, which lasted for more than three years, was officially settled. From March 28, 2021, China will impose anti-dumping duties of 116.2-218.4 per cent on imported wine originating in Australia for a period of five years. Affected by this, Australian wine exports to China fell off a cliff, and China once fell out of the forefront from the largest export market of Australian wine. On November 30, 2023, the Ministry of Commerce initiated a review of the case at the request of the Australian Vine and Wine Association; this week, China and Australia notified the Dispute Settlement Body of the mutually agreed solution to the WTO dispute (DS602). Public opinion generally regards this move as another landmark node in the improvement of Sino-Australian economic and trade relations after the abolition of barley tariffs in August last year. The Australian wine industry has high expectations for a return to the Chinese market-China once accounted for nearly 40% of the value of Australian wine exports before tax. However, some analysts pointed out that the overall consumption of Chinese wine has shrunk significantly in the past three years, and supplier countries such as Chile and France have filled the market gap. Australian wine's return to the Chinese market still needs to face the re-competition of prices and channels. Source: China Ministry of Commerce Announcement No. 11, 2024; Xinhua News Agency; Wine Australia, March 2024.
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(Australia) China ends double anti-tariff on Australian barleyThe Ministry of Commerce of China issued Announcement No. 29 of 2023 on August 4, reexamining and ruling that it is no longer necessary to continue the implementation of trade remedy measures related to imported barley originating in Australia. The Customs Tariff Commission of the State Council decided to terminate the imposition of anti-dumping duties and countervailing duties on Australian barley from August 5. The implementation of more than three years of Australian barley against China's "double anti" measures officially ended. From 19 May 2020, China imposed a 73.6 per cent anti-dumping duty and a 6.9 per cent countervailing duty on imports of barley originating in Australia, for a total of 80.5 per cent, for a period of five years. As a result, Australian barley basically withdrew from the Chinese market: in 2018-19 before the levy, Australian barley exports to China were about A $0.916 billion; Australia estimates that tariffs cause about US $1 billion a year to the Australian barley industry. In March this year, the China Liquor Industry Association filed an application for review, and the Ministry of Commerce filed a case for review on April 15. Australia suspended its dispute litigation in the WTO (DS598 case) during the same period. The Ministry of Commerce reviewed and determined that the situation in China's barley market has changed and it is no longer necessary to continue taxation. The Australian side welcomed the ruling, which Australian Trade Minister Farrell called a positive step in the economic and trade relations between the two countries. Analysts believe that the abolition of barley tariffs provides a reference for the treatment of other items of Sino-Australian economic and trade frictions, and the trend of relevant measures for Australian wine and other products is worthy of attention; for the domestic beer and barley import industry, the diversification of import sources will also expand accordingly. Source: China Ministry of Commerce Announcement No. 29, 2023; Australian Department of Foreign Affairs and Trade Statement; People's Daily Online, August 4, 2023.
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(India) India bans non-Basmati white rice exports, global rice prices rise to 12-year highIndia's Directorate General of Foreign Trade (DGFT) issued a circular on July 20 banning the export of non-non-basmati white rice from now on. India has imposed a 20% export tariff on the category since September 2022 and imposed export restrictions on broken rice. India is the world's largest rice exporter, exporting 22.03 million tons of rice in 2021/22, accounting for about 40% of the global rice trade. This tightening has rapidly pushed up international rice prices. The United Nations Food and Agriculture Organization (FAO) rice price index rose to 129.7 points in July, the highest since September 2011, up 19.7 per cent from a year earlier. The ban mainly hits African countries, Bangladesh, Malaysia and other importing countries that are highly dependent on India's white and broken rice; countries such as Senegal have traditionally been the largest buyers of India's broken rice. For China, India has been the largest source of rice imports in recent years: in 2022, China imported 2.18 million tons of rice from India, accounting for 35.2 per cent of China's rice imports, of which about 2.02 million tons were broken. The market expects that after the ban, China's rice imports will shift more to markets such as Thailand, Vietnam, and Pakistan, and import costs tend to rise; however, rice imports account for only about 2% of China's rice production, and the direct impact on the domestic staple food market is limited. The Indian government explained that the restrictions were aimed at safeguarding domestic supply and stabilizing domestic rice prices. India's rice export policy has continued to tighten since 2022, and the protectionist tendencies of the global rice trade have raised concerns among importing countries, and the international community is watching whether India will adjust its policy in the subsequent crop season. Source: DGFT Circular; Food and Agriculture Organization of the United Nations (FAO);USDA FAS; Reuters, July 2023.
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(Australia) Why some states 1/4 farmland that is owned by foreigners-and China holds the most(Australia) Why some states 1/4 farmland that is owned by foreigners-and China holds the most How one quarter of the farmland in some states is foreign owned - and China holds by far the most Foreign ownership of farmland in some states has surged to as high as 25 per cent as China maintains its position as Australia's most powerful foreign investor. Overseas investment has soared on the east coast with foreign holdings now owning 26.2 per cent of farmland in Tasmania, according to new Australian Taxation Office data. The proportion of foreign-owned agricultural land in the Northern Territory has also reached 25 per cent, with WA coming in third at 17 per cent. Foreign holdings increased by 3.4 per cent in Victoria and four per cent in New South Wales and the ACT - where more than 2.6million hectares of agricultural land is owned by an overseas company. US investors bought the most Australian farmland in the year to June 30 but Chinese companies now own 9.2million hectares - the most out of any foreign nation. British investors are the second most powerful owners in Australian agriculture with holdings equal to 8.17million hectares. The report comes amid a worsening trade war between China and Australia as the Asian superpower slaps increasingly punitive tariffs on Aussie produce. Last month, Beijing blocked Australian exports including coal and seafood before slapping a 212 per cent tariff on Aussie wine, effectively banning the product. The Chinese Embassy in Canberra has also released a dossier of 14 grievances including claims Australia is 'siding with the US', interfering in its affairs in Taiwan and Hong Kong. Rural property expert Col Medway said farmland was a prized asset for foreign buyers and allowed them to double their investment every 10 years. 'It's a very good return in this low-yielding environment we are currently experiencing,' he told The Australian. 'On top of that you've got the rent they receive. Some of these investors are not active - they own the land and rent it to an operator .' In June, Treasurer Josh Frydenberg announced foreign investment laws in Australia would be completely overhauled to protect the country's national security. From January 1 next year any foreign bid deemed to be from a 'sensitive national security business' will be vetted by the Foreign Investment Review Board. Previously, bids from private investors were only vetted if the asset was worth more than $275million. Mr Frydenberg said industries deemed 'sensitive' would include energy, telecommunications, utilities, defence and security. 'These are the most significant reforms in nearly 50 years and we hope of getting bipartisan support for them,' Mr Frydenberg said. Under the new system, the thresholds will remain the same for foreign bids for non-sensitive businesses. The treasurer will also gain powers to force a foreign owner to sell if national security concerns arise. Original source: Daily Mail published: 2021-1-12 | Responsible Editor: Xie Jinli
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(Australia) Farmland investment returns as high as 12%, but tensions with China are worrying(Australia) Farmland investment returns as high as 12%, but tensions with China are worrying Farmland investing pays solid 12pc return, but China tensions niggle Bullish returns from farmland investments are likely to falter in 2021 because of Australia's increasingly prickly trade relationship with our huge agricultural export customer, China. However, the tensions are not expected to have long term impacts or undermine the strong sentiment towards investing in rural property, says corporate scale farm manager Argyle Capital Partners. Argyle, which manages about $800 million in rural water and farming assets, is one of the investment groups whose property portfolio is monitored as part of the Australian Farmland Index. The index of managed farmland investments worth about $1.2b, posted strong annualised returns of 12.3 per cent in the third quarter of last year, although the results were down from almost 14.4pc a year earlier. While annualised income was up more than one percentage point to 7.07pc for the year, capital growth dropped from 8pc in September 2019 to about 5pc in 2020. For the past five years annualised returns have averaged 13.7pc - down slightly on a year ago. However, volatility in the agricultural index over the period was just 6.3pc. "The risk return profile reflected in the farmland index compares very favourably to Australian equity market investments," noted Argyle Capital Partners in commentary accompanying the latest index results. "The index suggests patient investors are well compensated for the relative illiquidity of farmland investments ." China syndrome However, the fund management group said the farm sector had been impacted by "arbitrary, punitive tariffs and other trade bans imposed by China on Australian exports, despite a bilateral free trade agreement in place since 2015 ". To varying degrees barley, wine, beef, lamb, cotton, fresh seafood and fresh produce exports had all been affected. "In the short term we anticipate the China trade imbroglio will impact farmgate commodity prices in some sectors, and may marginally dampen farmland revenues in the year ahead," Argyle's commentators noted. "However, we do not expect any long term impacts or negative sentiment towards Australian farmland investments ." Argyle's researchers noted Australian farm sector exporters had proven resilient and ingenious in dealing with market shifts in past decades and were now expected to increasingly focus on other export opportunities in Asia and the Middle East. Robust appetite for ag Director of research at the Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV) Amelie Delaunay said Australian farmland investments reflected robust investment appetite in the asset class. Farmland investing had a low correlation with traditional investment markets and was being supported by current low interest rates. ANREV, based in Hong Kong, has just taken over calculating the farmland index after it was established under the auspices of a similar US-based not-for-profit body NCRIEF. "The index raises the importance of agriculture as an investable asset class and delivers essential transparency to institutional investors," Ms Delaunay said. "It provides quality information to professional investors on institutional grade agriculture assets, allowing them to fully assess the sector from an income and capital return basis compared with other investment classes ." According to the latest index reading, growth in asset valuations for the September quarter saw a rise in quarterly capital growth to 1.56pc for the three months, compared with 1.32pc in June and just 0.37pc a year earlier. However, despite much improved seasonal conditions and surging livestock values in 2020, latest quarterly income returns from agricultural assets slipped to less than 0.5pc from about 1.5pc in June and 2.1pc a year ago. Export commodity prices could continue to reflect trade disruption pressures this year, but Argyle noted how rainfall had revived south eastern Australia's production capacity, also bringing irrigation water costs down to long term average values. The ANREV farmland index tracks the income and capital appreciation performance of 42 different properties managed by some of Australia's major agricultural asset managers, of which 72pc by value were permanent horticultural crops and 28pc were annual farmland assets. Original source: Country Life published: 2021-1-12 | Responsible Editor: Xie Jinli
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Zambian expert calls on China to invest more to boost agricultural exportsZambian expert calls on China to invest more to boost agricultural exports Zambian expert calls for more Chinese investment to boost agricultural export LUSAKA, Oct. 16 (Xinhua) -- A Zambian agriculture expert says there is need for more Chinese investment into Zambia's agriculture sector in order to help boost the country's economy and promote agricultural innovation. Having more Chinese investors investing in Zambia's agricultural export industry would not only lead to increased production but also help propel small-scale farmers' growth and increase the country's foreign earnings, said Christopher Kapembwa, an agronomist from the Zambia Institute of Agriculture. He said a number of Chinese firms have invested in large-scale crop and livestock production in Zambia and he would like to see more Chinese investments in Zambia's agriculture export trade. "Let us take advantage of Chinese investors that have invested in the agriculture sector and encourage them to produce more for export. It would also be good to form partnerships with the Chinese because they are hardworking," he said. Kapembwa also emphasized the need for developing countries to venture into agriculture for development, stating that it is one sure way of countering high poverty levels and stressed the need for policies that support export agriculture. He said much of the agriculture production in Africa and Zambia in particular has for a long time been centred on producing for local markets, a situation that according to him has hindered growth and expansion. "Agriculture for development entails among other things growing produce that can be easily exported so as to enable the country to earn foreign exchange. But first, we need to improve on the standards in terms of the way the crops are produced, processed and distributed," Kapembwa said. Original source: Xinhua published: 2020-11-12 | Editor: Xie Jinli