China to accept tariff exemption applications on US agriculture goods from March 2

China from March 2 will start accepting applications for tariff exemptions on the import of US agricultural goods, including soybeans, wheat, corn and sorghum, according to a statement by the State Council's Tariff Commission released on the Ministry of Finance website Tuesday.

The tariff exemptions cover all 696 US-origin goods, including agricultural goods.

The council said it has eliminated market-based procurement of agriculture commodities falling under the tariff structure to expedite applications and meet the growing needs of China's consumers.

According to market sources, the outbreak of the coronavirus in China could have a negative impact on China's soybean demand this year.

The outbreak comes at a time when China's hog herd is still in the early stages of recovery from the African swine fever, which led to the massive culling of the country's pig population.

China recently said it will release 10,000 mt of pork from its reserves in order to stabilize volatile pork prices.

China on February 6 announced it was cutting the 10% tariff on certain US-origin agriculture products to 5%, including soybeans, fresh seafood and poultry. The tariff cuts came into effect on February 14.

The move came after the US and China signed a phase 1 trade deal in January, bringing the two economies a step closer to a truce after being in a trade dispute for 18 months.

As part of the trade deal, China has committed to buy an additional $200 billion in American goods over the next two years, including $80 billion worth of agriculture products.