U.S. and China Near Enforcement Agreement in Talks

The U.S. and China are close to reaching a consensus on an enforcement mechanism in the ongoing trade talks. Treasury Secretary Steven Mnuchin told CNBC Wednesday that both sides have agreed to establish enforcement offices as part an effort to reach a trade agreement. Enforcement is a top priority and one of the most difficult to agree on, as previously stated by the Trump Administration.

Agriculture Secretary Sonny Perdue described ongoing talks with China to cut ethanol tariffs “positive” for U.S. farmers. Perdue said lowering ethanol tariffs in China “would obviously be good for our domestic corn industry, ” but cautioned that the talks are still ongoing.

Last year, China imposed up to 70 percent tariff levels on U.S. ethanol as part of the tit-for-tat trade war between the two nations. An industry source told Reuters the expectation is China will decrease the ethanol tariff level to five percent and push for E10 fuels in China.