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Posted: December 3rd, 2022
Import Quotas
Import Quotas
The article published on Reuters shows that the U.S. Department of Agriculture has defended the estimate of China’s corn imports that outpaced an earlier project ( help with nursing paper writing from experts with MSN & DNP degrees)ion. In the past, import sales beyond the estimates can be canceled (Ingwersen, 2020). The USDA left the project ( help with nursing paper writing from experts with MSN & DNP degrees)ion at 7.2 million tonnes for the upcoming year, which is similar to 2019/20. Data from USDA shows that sales were above 7.5 million tonnes although actual shipmen were 1.7 million tonnes. Ingwersen (2020) shows that one of the mistakes that analysts should not make is speculating the policy changes on import quotas.
Policies on trade restrictions undermine trade between countries. The policies set the limits for the imports of products. The physical limit is meant to favor a product’s producers in a country (Ingwersen, 2020). The changes in import quotas’ policies between China and the United States provide information that the restrictions will change in the future. The restrictions can undermine business, and thus countries strive to ensure they promote an open policy to the business issues.
It is not clear how the import quotas will change between China and the United States. The elimination of the import quotas on cereals may lead to setting aside similar policies that undermine trade (Ingwersen, 2020). During President Trump’s reign, he has developed harsh policies with countries. For example, the government blocked Huawei Inc. to practice in the United States. However, similar to the lifting of import quotas, it is not clear if such import quotas will change in the future. The article provides quality information and an eye-opener that attracts the attention of economists. The changes are likely to affect other products between the countries, thus promoting a friendly business approach.
References
Ingwersen, J. (2020). USDA defends estimate of China corn imports, despite hot sales pace. Reuters. Retrieved from https://uk.reuters.com/article/us-usa-trade-china-usda/usda-defends-estimate-of-china-corn-imports-despite-hot-sales-pace-idUKKBN27E02S
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