China Terminates ADCVD Sorghum Investigation

Today, the Chinese Ministry of Commerce announced its decision to terminate the ongoing AD/CVD investigation against U.S. sorghum producers. In the announcement, MOFCOM cited the additional expense that tariffs will have on downstream users of sorghum as a feed grain, including aquaculture and swine. As a result, these measures were deemed as not in the public interests and ordered to be terminated immediately.

The announcement of the termination of the sorghum AD/CVD case comes as Chinese Vice Premier Liu He visits Washington, D.C. for discussions with Treasury Secretary Steve Mnuchin, Commerce Secretary Wilbur Ross and USTR Ambassador Robert Lighthizer on the broader U.S.-China trade relationship. These discussions are taking place against the backdrop of an ongoing U.S. Section 301 investigation, which could result in a 24 percent tariff on $50 billion of Chinese goods.

Trump Withdraws from Iran Nuclear Deal

On May 8 the Trump Administration announced its intention to withdraw from the Joint Comprehensive Plan of Action (JCPOA or Iran nuclear deal), citing the ineffectiveness of the deal to curb Iran’s aggressive behavior. As a result, Iran sanctions suspended under the agreement snapped immediately back into effect, meaning any new contracts and financial deals are banned. Over the next few weeks, the U.S. Treasury’s Office of Foreign Asset Control (OFCAC) expects to revoke, or amend, as appropriate, general and specific licenses issued in connection with the JCPOA.  At that time, OFAC will issue new authorizations to allow the wind down of transactions and activities that were authorized pursuant to the revoked or amended general and specific licenses.

More information can be found here.

China announces intention to increase purchases of U.S. products

On Saturday, May 19 the Chinese government announced its intention to purchase more U.S. goods as part of ongoing discussion with the United States on reducing China’s bilateral trade surplus. In a statement released by U.S. and Chinese negotiating team, which included Secretary of the Treasury Steven T. Mnuchin, Secretary of Commerce Wilbur L. Ross, and United States Trade Representative Robert E. Lighthizer and Chinese State Council Vice Premier Liu He, China agreed to “significantly increase purchases of United States goods and services…[to] help support growth and employment in the United States.” The statement added that “there was a consensus on taking effective measures to substantially reduce the United States trade deficit in goods with China.” A copy of the joint press release can be found here.