The Daily View: Port fees and trade talks
THE US Trade Representative’s rule on US port fees for ships built in China faces a timing dilemma.
Earlier this month, the US extended its China tariff “reprieve” until November 10 to allow comprehensive trade negotiations to continue.
US tariffs on Chinese goods are still among the highest in the world, averaging around 50%, but they’ve been graciously lowered from “embargo” levels.
The outcome of US-China trade talks is extremely important to the US economy.
Around a third of US containerised imports, measured in teu, arrive from China. On the export front, China could become a much larger buyer of US soyabeans, crude, propane and liquefied natural gas should a lasting trade détente be reached.
With so much riding on the trade talks, the last thing the Trump administration should do is levy massive penalties on Chinese shipping and shipbuilding before November 10. That could derail the entire trade negotiation process.
But that is exactly what the latest USTR proposal calls for: US Customs is scheduled to begin collecting fees on China-built ships beginning on October 14.
These port fees have been watered down, but they are still extremely onerous when it comes to China’s Cosco.
The USTR has yet to publish its final rule, and speculation is growing that the delay is tied to US-China negotiations.
That makes perfect sense. Port fees are a separate issue from tariffs, but they’re effectively connected by the timing of trade talks.
Any upside for American interests from the port fees — if there is any — is far outweighed by the negatives of an all-out trade war with China. It’s time for the USTR to put the port fee plan on temporary hold.
Greg Miller
Senior maritime reporter, Lloyd’s List
Content Original Link:
" target="_blank">
