China loosens import restrictions for US goods as new trade deal takes effect
26 Feb 2020 --- “Numerous actions” have been taken by China to begin implementing its agriculture-related commitments under the landmark US-China Phase One Economic and Trade Agreement. This is the latest assertion of the US Department of Agriculture (USDA) in an update regarding the agreement that entered into force on February 14. As trade relations continue to thaw, the USDA has listed the measures China has taken, which are expected to broaden opportunities for its nation’s farms and businesses.
“President Trump signed the Phase One agreement a little more than a month ago and we are already seeing positive results. We will ensure the agreement is strictly enforced for the benefit of our workers, farmers, ranchers and businesses,” says Sonny Perdue, US Secretary of Agriculture.
In addition, China has begun announcing tariff exclusions for imports of US agricultural products subject to its retaliatory tariffs and it also announced a reduction in retaliatory tariff rates on certain US agricultural goods. These types of actions are expected to help facilitate China’s progress toward meeting its Phase One purchase commitments.
Given the reinvigorated trade climate, Chinese purchases of US agricultural goods are expected to hit US$40 to 50 billion over the next two years, according to Robert Lighthizer, US Trade Representative (USTR) in previous statements. These figures are notably higher than the US$8.6 billion the country bought in 2018 and double what it bought in 2017 prior to the trade dispute between the two nations.
Under the new deal, actions by China include:
Signing a protocol that allows the importation of US fresh chipping potatoes.
Lifting the ban on imports of US poultry and poultry products, including pet food containing poultry products.
Lifting restrictions on imports of US pet food containing ruminant material.
Updating lists of facilities approved for exporting animal protein, pet food, dairy, infant formula and tallow for industry use to China.
Updating the lists of products that can be exported to China as feed additives.
Updating an approved list of US seafood species that can be exported to China.
US-Chinese trade relations are beginning to soften.Thawing trade relations
Over the last year, US-China trade relations have continued to soften significantly. In November, China made a decision to lift its four-year ban on poultry imports from the US, signaling new trade opportunities for North American chicken. The ban was first enforced by China in 2015 following an outbreak of avian influenza, which has since been the focal point of trade negotiations between Beijing and Washington DC.
Key players in the US farming industry have spoken out in favor of the new trade agreement, with the US pork sector voicing its support of the agreement. “We’re pleased with what appears to be progress and look forward to seeing the details of the agreement. US pork producers have been harmed financially by the trade dispute with China,” Rachel Gantz, Communications Director at the National Pork Producers Council (NPPC), told FoodIngredientsFirst in an exclusive interview last December.
“If the US gained unrestricted access to the Chinese market, it would over the next decade reduce the overall trade deficit with China by nearly six percent, generate 184,000 new US jobs and produce US$24.5 billion in new sales,” adds Gantz.
“We look forward to realizing these benefits this year and are encouraged by progress made last week. We fully expect compliance with all elements of the deal,” concludes Secretary Perdue.
By Benjamin Ferrer
