Poultry Agreement, Elimination of Beef Restrictions Signals Progress of Chinese Ag Commitments, USTR Says

More progress has been made on China’s agricultural commitments under the U.S.-China phase one trade deal, including an agreement relating to poultry exports and an updated list of U.S. facilities eligible to export beef and grain to China, the Office of the U.S. Trade Representative said March 24. The progress shows China is “moving in the right direction” to fulfill its purchase agreements, Agriculture Secretary Sonny Perdue said in a statement. USTR Robert Lighthizer released an update on Chinese agricultural commitments earlier this year (see 2002250055).

Among the recent signs of progress, the USTR said, is a regionalization agreement that will allow the U.S. to continue exporting poultry to China “in the event of a detection of highly pathogenic avian influenza or virulent Newcastle disease” in the U.S. This will help protect market access under the agreement for U.S. poultry exporters, the USTR said. China also notified the U.S. of proposed maximum residue levels for three hormones used in beef production, a recognition by China “of safe and science-based U.S. production methods” that will benefit U.S. beef exporters.

In addition, China has removed all references to age restrictions on its beef and beef production list, clearing the way for annual U.S. beef exports to reach $1 billion, the USTR said. China also published a list of U.S. beef and pork establishments that are eligible to export to China as well as cleared U.S. export facilities for “dried grains with solubles.” The USTR said this action, if coupled with the removal of other trade barriers, will allow U.S. exporters to “recapture” the dried grain market.

China also announced a “streamlined process” for registering new U.S. feed products for export “in response to delays caused” by the spread of the novel coronavirus COVID-19, the USTR said. The announcement includes deferrals of deadlines for submitting registration applications and exemptions for certain on-site inspections, according to an unofficial translation. The USTR also said that “many importers” in China “report that they are receiving tariff relief for purchases of U.S. food and agricultural products” under China’s most recent tariff exclusion process (see 2002180039).