Soybean farmers will be happy with potential China trade deal, says US Treasury Secretary Bessent

Washington, Oct 27 (IANS) Soybean farmers are going to be "extremely happy" with the terms of a trade deal that US and Chinese negotiators are working on this weekend, US Treasury Secretary Scott Bessent said.

In an interview with CBS News, Bessent said on Sunday earlier that the two sides have agreed to a "substantial framework" for a deal averting President Donald Trump's threat of an additional 100 per cent tariff on Chinese goods.

Soybean farmers have been at the forefront of US agricultural concerns since Trump launched his trade war in April.

China, once the largest buyer of American soybeans (Beijing bought $12.5 billion worth last year), has not purchased any US soybeans since May, according to US Department of Agriculture data released in late September.

US Trade Representative Jamieson Greer has said that the Trump administration is "quite focused on making sure that China buys our agricultural products".

"China has actually not covered up all their soybean needs for December and January... and we expect China will have to resume those purchases," Greer added.

US President Donald Trump has said repeatedly ahead of the planned meeting with China's leader Xi Jinping that he would press Beijing to resume purchases of US soybeans.

Renewed Chinese buying may not offer much immediate support for US growers, as crushers in China have already secured ample soybean supplies that can cover their demand through this year and part of next, narrowing the window for new US sales.

Bessent said on Sunday that he believes the US has reached a framework agreement with China to avoid imposing an additional 100 per cent tariff on Chinese imports.

"I think we've reached a substantial framework for the two leaders who will meet next Thursday... that tariffs will be averted," Bessent said on ABC News from Kuala Lumpur, Malaysia, where President Trump arrived on Saturday for a weeklong Asia diplomacy tour.

Trump is expected to meet with Chinese leader Xi Jinping in South Korea later this week.

Earlier, Chinese International Trade Representative Li Chenggang said the US and China had reached "preliminary consensus" on trade issues during discussions in Malaysia, according to Chinese media.

Bessent did not provide details about the framework but said on NBC News that he anticipates the US would get "some kind of deferral" on rare-earth export controls.

The minerals have been central to trade tensions between the top global economies.

Bessent said the framework sets up Trump and Xi "to have a very productive meeting," adding, "I think it will be fantastic for US citizens, for US farmers, and for our country in general."

--IANS

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