China to not increase annual import quotas for rice, wheat and corn

China is not going to increase the annual quotas for the import of low-tariff corn, rice and wheat for the accommodation of the stepped-up purchases of the goods from the farms of United States as per the senior official of agriculture on this Tuesday.

This move might be making it harder for China to meet the commitments which have been made by them with regards to the Phase 1 deal of trade which is due for being signed in the next week. The president of United States, Donald Trump had in December said that they are going to double the purchases of US products from China where it is going to go from $24 billion in the scenarios pre-war to the level of $40-$50 billion every year.

The amount has not been confirmed by China. The comments by Han have made it clear that China has the desires of protecting their farmers even though there are pressures of purchases to increase in a dramatic manner for the agricultural goods from the United States.

In the event where they will buy a minimum of $40 billion worth products of United States and they will have to be maximizing all of their quotas for the major commodities and would have to purchase all of these from only one source, United States which the experts are seeing as a major problem.

The exclusive purchasing form United States would mean that they ignore the export rivals like Brazil and also the suppliers which supply at a low cast such as Ukraine and this is going to mean that the markets would be distorted and will be raising the costs of the grain importers from China.

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