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About The Observer. (La Grande, Or.) 1968-current | View Entire Issue (Jan. 1, 2019)
WEDNESDAY, JANUARY 1, 2020 BUSINESS & AG LIFE Trump will sign first-step of China trade deal on Jan. 15 $250billionofimports.Thosetariffs have raised the cost of chemicals, electri- The Associated Press cal components and other inputs for U.S. companies. American fi rms have cut back WEST PALM BEACH, Florida — The on investment in machinery and other fi rst phase of a U.S.-China trade agree- equipment, slowing the economy’s growth ment will be inked at the White House in this year. mid-January, President Donald Trump A study last week by economists at the announced Tuesday, adding that he will Federal Reserve found all of the Trump visit Beijing at a later date to open another administration’s tariffs, including those on round of talks aimed at resolving other steel and aluminum as well as on Chinese sticking points in the relationship. imports, have cost manufacturers jobs and The so-called “Phase One” agreement raised their costs. That’s mostly because of is smaller than the comprehensive deal retaliatory tariffs imposed by China and Trump had hoped for and leaves many of other trading partners. the thorniest issues between the two coun- Many experts in the U.S. and China are tries for future talks. Few economists expect skeptical that U.S. farm exports can reach any resolution of “Phase Two” before the $40 billion. The most the U.S. has ever ex- presidential election in 2020. portedtoChinabeforehasbeen$26billion. And the two sides have yet to release detailed documentation of the pact, making China has not confi rmed the $40 billion fi gure. it diffi cult to evaluate. Still, the agreement has helped calm con- Trump said high-level Chinese govern- ment offi cials will attend the signing on Jan. cerns in fi nancial markets and among many U.S. businesses that the trade war with 15of“ourverylargeandcomprehensive China would escalate and potentially lead to Phase One Trade Deal with China.” a recession. The approval by the Democratic- “At a later date I will be going to Beijing led House of the Trump administration’s where talks will begin on Phase Two!” revamp of the NAFTA agreement has also Trump said in his tweet. He did not an- reduced uncertainty around global trade. nounce a date for the visit. Since the U.S.-China pact was fi rst an- China has agreed to boost its U.S. goods nounced in October, the stock market has imports by $200 billion over two years, risen steadily and is on track to fi nish the the U.S. Trade Representative said Dec. yearwithitsbiggestgainsince2013.Most 13whenthedealwasannounced.That analysts now forecast that the economy will includes increased purchases of soybeans grow at a steady if modest pace in 2020, ex- and other farm goods that would reach $40 tending the current record-long expansion. billion a year. The Phase 1 deal has left some major China also has agreed to stop forcing U.S. issues unresolved, notably complaints that companies to hand over technology and Beijing unfairly subsidizes its own compa- trade secrets as a condition for gaining ac- nies to give them a competitive advantage cess to China’s vast market, demands that in world markets. had frustrated many U.S. businesses. The Trump administration argues — and In return, the Trump administration independent analysts agree — that China droppedplanstoimposetariffson$160 uses the subsidies in an effort to gain an billion of Chinese goods, including many advantage in cutting-edge fi elds such as consumer items such as smartphones, toys driver-less cars, robotics and artifi cial intel- and clothes. The U.S. also cut tariffs on ligence. another $112 billion of Chinese goods from Another sticking point in future talks 15%to7.5%. Many analysts argue that the results are will likely involve rules around data fl ows, fairly limited given the costs of the adminis- with China looking to require more foreign tration’s17-monthtradewaragainstChina. companies to keep data they use in China as opposed to stored overseas. U.S.farmexportstoChinafellin2018to “It’s a very toxic brew and I don’t know about one-third of the peak reached six years earlier, though they have since started that we’re really going to see much progress on it,” said Mary Lovely, a trade economist to recover. at the Peterson Institute for International Import taxes remain on about half of Economics. what the U.S. buys from China, or about By Darlene Superville and Christopher Rugaber Corporate activity tax begins Jan. 1, DOR offers resources Oregon Department of Revenue SALEM — With the Jan. 1 start date for Or- egon’s new Corporate Activ- ity Tax, the Department of Revenue reminds business taxpayers of the resources available to help them learn about, and comply with, the new tax law. Several resources are available for business taxpayers and tax prepar- ers on the CAT page of the Department of Revenue website at www.oregon.gov/ dor, including: •Alinktoregister through Revenue Online •Alistoffrequently asked questions, including high-level summaries of the rules and other topics that will help taxpayers comply with the new law •Draftsofthefirst12 administrative rules •Asign-upformtore- ceive the latest updates on the CAT For other information, email questions to cat.help. dor@oregon.govorcall503- 945-8005. What is the CAT? The Oregon Legislature created the Corporate Activity TaxinHouseBills3427and 2164duringthe2019session to provide new funding for early learning and K-12 edu- cation. The CAT is imposed on businesses for the privilege of doing business in Oregon, including those located inside and outside of Oregon. It’s measured on a business’ com- mercial activity — the total amount a business realizes from activity in Oregon. Businesses with taxable commercial activity in excess of $1 million must pay the Corporate Activity Tax. The taxis$250plus0.57%of gross receipts greater than $1 million after subtrac- tions. The CAT applies to all business entity types, such as C and S corpora- tions, partnerships and sole proprietorships. Businesses withmorethan$750,000in Oregon commercial activity are required to register for the CAT. Registration and administrative rules The new law requires registrationwithin30days of meeting the threshold of $750,000inOregoncom- mercial activity. A penalty of $100 per month may be as- sessed for failing to register, up to $1,000 per calendar year. Businesses that wish to do so can register early. Registration for the CAT is now open on Revenue On- line (https://revenueonline. dor.oregon.gov/tap/_/). DOR is currently in the process of writing tempo- rary administrative rules to provide guidance and clarity regarding the new tax. The rules have been divided into three groups according to priority. The highest prior- ity group will be fi led with the Secretary of State in January, with the other two groups following in February and March. As drafts of the rules are completed, DOR will post them on the CAT webpage. Draft versions of the fi rst 12 temporary rules are now available. Visitwww.oregon.gov/ dor to get tax forms, check the status of your refund, or make tax payments; call 800-356-4222toll-freefrom an Oregon prefi x (English or Spanish)or503-378-4988in Salem and outside Oregon; or email questions.dor@ oregon.gov. For TTY (hear- ing or speech impaired), call 800-886-7204. THE OBSERVER & BAKER CITY HERALD — 3B New apple varieties are red inside and out So he collected seed from the trees after they had been pollinated by Honeycrisp. The trees from that seed were more promising, PROSSER, Washington. — They’re little and by 2009 he had what he later trade- known so far with commercial sales just be- ginning, but the breeder of the red-fl esh Lucy markedasLucyRoseandLucyGlo. ProprietaryVarietyManagement,in RoseandLucyGlobrandedappleshopes Yakima, working with focus groups selected consumers will love them. the names and oversees commercialization. “I’m a proud grandpa of these things. All Chelan Fresh Marketing in Chelan and I’ve heard is good things. We have a picture StemiltGrowersinWenatcheehavelicenses on our refrigerator of a preschool group in to grow, pack and sell the apples. Kirkland and the card says, ‘We love your “They’ve created a lot of excitement as apples!’” says Bill Howell, the breeder and something new and different,” said Tim Ev- grower in Prosser. ans, general sales manager of Chelan Fresh They have “outstanding fl avor” from Hon- Marketing. eycrisp as one parent and a “hint of berry” They are selling at high-end prices with from the other, a crab apple, he says. TheLucyRosehasredskinwhileLucyGlo just a “couple thousand boxes” sold the firstyearfromthe2018cropandabout is a little tangy and has yellow skin. 8,00040-poundboxessoldintwo-layer Howell,74,wasaresearchtechnologist Euro cartons from the 2019 crop, Evans in plant virology at the Washington State said. University Irrigated Agriculture Research Chelan Fresh sold out in early December andExtensionCenter,inProsser,from1973 to retailers across the country, he said. to 2012. He studied viruses in sugar beets, “There are some handling issues with the carrots and fruit trees. Glo.It’spronetobruisingandtheredflesh He’s now the part-time manager of the can come through. We’ve tried to create best Northwest Nursery Improvement Insti- practices,” he said. tute, an association of commercial tree fruit Chelan Fruit Cooperative members and nurseries. GebbersFarmsgrowtheapples,hesaid. He has cattle and tree fruit on his 9-acre Howell is experimenting with Cripps Pink Topcliffe farm near Prosser and planted the and Honeycrisp crosses but says his empha- fi rst Honeycrisp apples in the state there in sis is on red-fl esh varieties. 1994. The limiting factor, he said, is fi nding About 20 years ago as Crunch Pak, in enough cooler, high-elevation sites where Cashmere, was starting to produce snack packs of sliced apples, Howell thought, “It they grow best for maximum fi nish, color and would be neat to have some color in there.” quality. He obtained and planted three varieties “Ultimately, we are all trying to grow the of red-fl esh apple trees from a nursery in apple market,” Howell said. “I hope that with Michigan. the uniqueness of red fl esh and fl avor that “They turned out to be not very good qual- we can get per capita consumption of apples ity fruit,” he said. up a bit.” By Dan Wheat Capital Press EPA orders Bonanza.com to stop selling illegal pesticides Environmental Protection Agency SEATTLE — The U.S. Environmental Protection Agency issued a Stop Sale order to online marketplace Bonanza.com requiring the company to immediately halt sales of a dozen imported pesticide products not legal — or safe — for sale in the United States. Among the unregistered, illegal pesticides targeted by the order is “Miracu- lous Insecticide Chalk,” a common and particularly dangerous product because of its documented history of causing illness in children who mistake the chalk for regular sidewalk or black board chalk. None of the pesticides in the EPA order are registered with the EPA, and most contain false or misleading claims on their labelling. All pesticides for sale in the United States must be regis- tered with the EPA and have an EPA registration number on their labels. Ed Kowalski, director of the Enforcement and Com- pliance Division of EPA’s Region 10 offi ce in Seattle, said, “The proliferation of unregistered pesticides in the marketplace, particularly in the e-commerce environ- ment, poses a signifi cant and immediate health risk to consumers, children, pets, and others exposed to the products in use or in transit.” The Bonanza.com prod- ucts targeted by the EPA’s Stop Sale order are: trader ray’s SHOOT BETTER, SAVE MONEY! We Sell New & Used Guns at Competitive Pricing Hours: Mon-Sat 11-5:30 2800 Broadway, Baker City 541-523-9397 • 541-519-7842 •CockroachKillingBait Box Anti Pest Control Roach Magic •MiraculousInsecticide Chalk Cockroach Roaches Bug Pest Killer Magic Pen •CockroachKillingBait Cockroach Killer Roach Pest Control Insecticide •CockroachKillingBait Pest Control Powder Power- ful Kill Particle •GreenLeafPowder Killer Bait Cockroach Repel- ler Pest Control •GreenLeafCockroach Killing Bait Powder •PowerfulCockroach Killing Bait Roach Catcher Kitchen Household Pest Controller •CockroachesKiller Cockroach Repellent Smoke Mosquitoes Fly Ants Home Pests •MaxforceFCSelectRoach KillerGelBait+Feeding •MolePoisonVeleno Talpa. Killer Taupe - Pest Control •NoNestCockroach EliminatorGel Cockroach Pest Control Gel35GCockroachand Domestic Insects Killer Agromaxi Illegal distribution of “Mi- raculous Insecticide Chalk” and“GreenLeafCockroach Killing Bait Powder” were the subject of EPA Stop Sale orders issued to Ama- zonin2015and2016and a subsequent $1.2 million penalty order against the company.