The American Bakers Association (ABA) applauds United States Trade Representative (USTR) and the United States Department of Agriculture (USDA) on their efforts to reach a successful agreement that will generate USD80bn in new Chinese purchases from the US over the next two years.
“The main concern is how supply chain disruption issues should be resolved. The certainty of a stable supply chain is imperative for our industry. Reducing the impact of tariffs on steel for bakery equipment, protecting our suppliers’ intellectual property, and reducing retaliatory tariffs on key bakery ingredients are critical elements to be celebrated in this important first step,” said Robb MacKie, president & CEO, American Bakers Association.
After years of intense negotiations, the U.S. and China signed off on “Phase 1” of USTR’s Economic and Trade Agreement between the United States and China.
The deal promises billions of dollars’ worth of agricultural purchases and the beginning of reforms to China’s longstanding practice of forced technology transfer.
It includes a “dramatic expansion of U.S. food, agriculture and seafood product exports” as well as an agreement by China to end its long-standing practice of forcing or pressuring foreign companies to transfer their technologies to Chinese companies, according to a U.S. Trade Representative document.