A new study from the University of Illinois shows China’s tariff
rate quota (TRQ) policy significantly impacted US grain exports ahead of the
trade war.
Lead author of the study Bowen Chen tells Brownfield they estimate China’s 2017 grain imports from the US could have been $1.4 billion or 40% higher without the restriction and wheat was hit the hardest.
“The US wheat exports to China may have been reduced by around 80%.”
He says China uses the two-tiered TRQ system to make foreign
commodities more expensive, therefore giving more incentive for domestic
producers.
