China -- Tariffs
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Started by wglassfo - Oct. 15, 2019, 1:33 p.m.

I see china wants tariffs removed before signing the deal and holding  Ag commodities as sort of hostage to signing.   We all saw Trump show the world, with chinese negotiaters present and china verbally said they would be buying Ag commodities, plus they shook hands on the deal.. I think they have bought pork because their stores of pork are gone and they need pork, bigly

Yes china agreed, but as I posted recently a deal is when china starts to negotiate. Even a hand shake means nothing to them, which did happen. I posted china has a different culture and negotiations is a part of their culture. We think a hand shake means you have given your word and if you break that hand shake, your name is mud in western culture. Not so with china. China has never honoured a deal if they think something better can be had [re: how many times has china bought beans and then not bought those same beans if they can buy cheaper]

So: Just a refresher course on chinese culture, that we must remember, always

So the question is???

Do we agree to with draw the tariffs??

My self I would cancel all future tariffs and then wait and see how much if any china buys.

 [I don't know at this time if they mean all tariffs or the tariffs scheduled to come in the future, but I would only cancel future tariffs.]

We can't give away the store, on the other hand we have to remember they need something to satisfy their need to "save face" We have to understand what "saving face" means to china, and work within those parametors

It needs to be made clear to them we will meet them on their terms, for future tariffs only, but if they continue to push for more, more then Ag commodites is not going to mean we cave in at any price

If the negotiations proceed in a even balance for everybody then more tariffs will be lifted, assuming they are negotiating in good faith. 

 We will go the 1st step [obviously somebody has to make a move in some direction] but we will not just roll over every time they demand more, more

You can bet they will test our resolve and they know Ag commodities is Trumps hot button. Trump has to maake it clear that we are not for sale at any price, that china decides. There are two sides at the table and china must not be allowed to set the agenda. Yes we will take the 1st step but that is as far as we go

If china views this as a sign of weakness then back with the tariffs.

Honestly I can't understand why china doesn't wait until 2020. The only thing I can think of is that china needs food now and can't wait until 2020. That gives us tremendous leverage and we should hope our negotiators know how desperate china is for food now, not in a yr from now. If SA has crop troubles or they are at maximum exports then we have even more leverage. The dredging of the Parana river won't happen in a yr or so, thus we must negotiate with strong enforcement rules that we can apply, immediately

I would hold their feet to the fire, while making it look as if we really want a fair but just deal, which we really do want. If china balks then we know they will break any deal, with out a worry in the world.

When negotiating with china, advance with utmost caution.

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By metmike - Oct. 15, 2019, 7:57 p.m.
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Thanks Wayne!

Trump will be making a deal with China with certainty. 

He might have been planning to wait until closer to the election but maybe the timetable has been moved up with the impeachment stuff going on.