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Peter Goggi (Photo by Dan Bolton) <\/p>\nOn Saturday President Donald Trump put a hold on placing tariffs on the most recent list of Chinese imports, which includes tea. Chinese President Xi Jinping announced negotiations would resume.<\/p>\n
In response, the tea industry drew a collective breath of relief, yet remains wary of the outcome of talks. Last week the U.S. Trade Representative (USTR) heard testimony from two prominent tea industry leaders, Peter Goggi, president of the Tea Association of the USA and Jason Walker, marketing director at Firsd Tea, the New Jersey-based division of the world\u2019s largest Chinese green tea exporter, Zhejiang Tea Group.<\/p>\n
Goggi was quoted by the Chinese New Service as \u201cdead against\u201d tariffs on tea.<\/p>\n
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\n Peter Goggi (Photo by Dan Bolton) <\/p>\n
\u201cThere are very small terroirs or micro climate areas in China that produce very, very high quality teas and very unique teas that you cannot get anywhere else in the world,\u201d said Goggi, adding \u201cIf the tariffs go through, ultimately the consumer will pay the price. It\u2019s the consumer that gets hurt.\u201d<\/p>\n
The June hearings spanned seven days and were attended by a broad range of industry leaders concerned that import taxes of up to 25% on Chinese made goods and agricultural products would harm consumers. Conducting the hearing were representatives of the State Department, the Commerce Department, the Treasury Department, the Labor Department and the U.S. Department of Agriculture.<\/p>\n
Opposition was near unanimous for the proposed tariffs on $300 billion worth of goods. Tea was not included on the previous lists but is named among the 3,805 subheadings on List 4. Approval would have increased tariffs by up to 25% on tea and coffee from China. It was a busy week for USTR which also listed procedures for exclusion from tariffs on List 2 and List 3 goods. <\/p>\n
An estimated 60,000 applications for exclusions are expected when the process opens June 30. <\/p>\n
Goggi formally requested that green and black teas, instant tea, and extracts be excluded. Seventy percent of the green tea consumed in the U.S. originates in China. \u201cThere isn\u2019t one section of the tea market that is not touched by Chinese tea,\u201d he said.<\/p>\n
U.S. consumption amounts to less than 1% of China\u2019s total tea production, Goggi explained. Commercial tea growers in America do not need to be protected by tariffs. \u201cTea has been tax free for many, many, many years and it should remain that way,\u201d he said.<\/p>\n
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Jason Walker (Photo courtesy of Jason Walker) <\/p>\n
Walker said committee members listened attentively and asked follow-up questions regarding the testimony. \u201cQuestions posed by committee members indicated they had familiarized themselves with the testimonies prepared,\u201d he said.<\/p>\n
Transcripts of the hearings are posted on the USTR.gov website.<\/p>\n
Read testimony .<\/p>\n
Walker explained that individuals providing testimony were organized into panels of five. \u201cThe panel that included Firsd Tea also heard testimony from the leader of an international business council and a university-level economics instructor. All members of our panel opposed the tariffs,\u201d said Walker.<\/p>\n
\u201cSpeaking with others who had attended hearings from the previous day(s), the overwhelming majority of witnesses opposed the tariffs,\u201d he said. <\/p>\n
Once hearings are concluded, there will be a period ending this week in which the Committee will await written materials related to witness testimony and deliberate before announcing their recommendations. <\/p>\n
In July 2018 the U.S. imposed a 25% tax on 818 Chinese goods valued at $34 billion in the first round of actions designed to halt Chinese trade practices that the U.S. considers unfair. In August 2018 an additional 279 goods (List 2) valued at $16 billion were listed. On May 10 President Trump announced a 25% levy on 5,769 Chinese imports valued at $200 billion (List 3) and threatened to impose a 25% tax on the remaining 3,805 in Chinese goods (List 4).<\/p>\n
\u201cFirsd Tea continues to monitor the situation carefully, and has provided a voice to the government on behalf of our customers and the U.S. tea-drinking public,\u201d said Walker, who said that he attended the hearings optimistic \u201cthese two great nations can reach a satisfactory trade agreement that will benefit both sides.\u201d <\/p>\n
Source: USTR, , <\/em> <\/p>\n On Saturday President Donald Trump put a hold on placing tariffs on the most recent list of Chinese imports, which includes tea. Chinese President Xi Jinping announced negotiations would resume. In response, the tea industry drew a collective breath of relief, yet remains wary of the outcome of talks. Last week the U.S. Trade Representative<\/p>\nRelated Posts:<\/h3>\n
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