US Dairy Export Council Signs Deal With China’s Researchers, Hoping to Strengthen Trade Partnership

Forex News

The US Dairy Export Council (USDEC) signed a memorandum of understanding with Jiangnan University, in the city of Wuxi, near Shanghai, to build the US-China Dairy Innovation Centre at the school. The announcement between the USDEC and Jiangnan does highlight the interconnectedness of the two economies, even as the trade dispute escalates. Analysts suggest, the agreement was the latest effort to boost business with China.

The agreement was signed amid rising trade tensions between the world’s two largest economies, as the administration of President Donald Trump has imposed tariffs targeting Chinese products including solar panels, steel and aluminum. Mainland China and Hong Kong combined was the third-largest export market for US dairy products last year, behind Mexico and Canada. According to government and trade data, the US dairy exports worldwide reached $5.48 billion in 2017, up 14% from 2016.

Meanwhile, China introduces duties on 128 American goods. This step should be seen as a response to the decision of the US administration to raise tariffs on imports of steel and aluminum. China's Ministry of Finance claimed that China stands for the multilateral trading system, and countermeasures are fair and consistent with the principles of the World Trade Organization. The decision comes into force on April 2.