Tag Archives: agricultural

China pledges to buy ‘substantial amount’ of U.S. goods

FILE PHOTO: Ship and containers are shown at the port of Los Angeles in Los Angeles, California, U.S. July 16, 2018. REUTERS/Mike Blake/File Photo

WASHINGTON (Reuters) – China has pledged to purchase “a substantial amount” of agricultural, energy and manufactured goods and services from the United States, the U.S. Trade Representative’s office said on Wednesday after U.S.-China trade talks wrapped up in Beijing.

In a statement that gave few details on the specific outcomes of the latest talks, USTR said the two sides discussed “ways to achieve fairness, reciprocity and balance in trade relations between our two countries.”

U.S. and Chinese officials also discussed issues related to intellectual property protections and the need for any agreement that resolves the trade dispute between the world’s two largest economies “to provide for complete implementation subject to ongoing verification and effective enforcement,” USTR said.

The meetings this week were the first face-to-face talks since U.S. President Donald Trump and Chinese President Xi Jinping agreed in December to a 90-day truce in a trade war that has roiled global financial markets.

If no deal is reached by March 2, Trump has said he will proceed with raising tariffs to 25 percent from 10 percent on $200 billion worth of Chinese imports, at a time when China’s economy is slowing significantly. Beijing has already retaliated with its own tariffs on U.S. products.

Companies in both countries are feeling pain from the effects of the tariffs. Apple Inc <AAPL.O> rattled global markets last week by cutting its sales outlook, blaming weak demand in China.

(Reporting by David Lawder and Chris Prentice; Writing by Nick Zieminski; Editing by Franklin Paul and Paul Simao)

South Africa’s Cape Town faces severe economic troubles over drought

Sand blows across a normally submerged area at Theewaterskloof dam near Cape Town, South Africa, January 21, 2018. REUTERS/Mike Hutchings

JOHANNESBURG (Reuters) – Rating’s agency Moody’s warned on Monday the water crisis affecting Cape Town would cause the city’s borrowing to rise sharply and the provincial economy to shrink the longer the situation lasted.

A severe drought afflicting South Africa’s Western Cape province is expected to cut agricultural output by 20 percent in 2018, decimating the wheat crop and reducing apple, grape and pear exports to Europe, according to national government.

The City is bracing for “Day Zero” in late August when its taps could run dry.

Moody’s said in a report that one of the most direct impacts would be on Cape Town’s operating revenues, as 10 percent of them are from water charges.

The ratings agency estimates capital expenditure related to water and sanitation infrastructure could be as much as 12.7 billion rand ($1 billion) over the next five years.

“The long-term solutions are likely to require significant capital and operating expenditure,” Daniel Mazibuko, an analyst at Moody’s said.

The drought also threatens to slow South Africa’s economic rebound which has been fueled by a surge in agricultural production. Cape town generated nearly 10 percent of the country’s total gross domestic product in 2016.

Last Tuesday, Statistics South Africa said the economy grew 3.1 percent in October-December, the highest rate since the second quarter of 2016, after expanding by a revised 2.3 percent in the third quarter. Agriculture showed a 37.5 percent expansion after growing 41.1 percent in the previous quarter.

Government has declared drought a national disaster after its southern and western regions including Cape Town got hit hard by the drought, freeing extra funds to tackle the crisis.

(Reporting by Mfuneko Toyana; Editing by James Macharia)