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Implementation update on China trade dealImplementation update on China trade deal

Regionalization agreement reached on avian influenza, virulent Newcastle. Also, agreement reached on beef product access.

March 25, 2020

3 Min Read

Progress continues on the implementation of the agriculture-related provisions of the U.S.-China Phase One Economic and Trade Agreement.

The agreement came into effect on Feb. 14, 2020, and recent actions build upon the actions announced by USDA and USTR on February 25 and March 10.

"These steps show that China is moving in the right direction to implement the Phase One agreement," said Agriculture Secretary Sonny Perdue. "We will continue to work with China to ensure full implementation of its commitments and look forward to seeing further improvement and progress as we continue our ongoing bilateral discussions."

"We are working with China on a daily basis as we implement the Phase One trade agreement," said Trade Ambassador Robert Lighthizer. "We recognize China’s efforts to keep the commitments in the agreement and look forward to continuing our work together on trade matters."

Among the recent actions:

Both countries signed a regionalization agreement that, in the event of a detection of highly pathogenic avian influenza or virulent Newcastle disease in a particular region of the United States, will allow U.S. poultry exports from unaffected regions of the country to continue.

China notified the United States of proposed maximum residue levels for three hormones commonly used in U.S. beef production. This recognition benefits trade with China in beef, a fast-growing market that imported $8.4 billion worth of beef products in 2019.

For the first time since 2003, nearly all beef products will have access into China. U.S. pork producers will also be able to expand the types of pork products shipped to China. Per the agreement, China expanded its internal list of U.S. beef and pork products eligible to enter its ports, including processed meat products. On the beef and beef products list, China removed all references to age restrictions, in line with its Feb. 24 announcement that conditionally lifted restrictions on beef and beef products from cattle aged 30 months and older. USDA estimates that American cattlemen could export up to $1 billion per year under this trading environment. China also published an updated list of 938 U.S. beef and pork establishments eligible to export to China. The USDA Food Safety and Inspection Service export library has been updated to reflect these changes. China has agreed to import all beef, pork, and poultry products except for those included in Annex 1, Beef, Pork, and Poultry Products Considered Not Eligible for Import into China of Chapter 3 of the U.S.-China Phase One Economic and Trade Agreement. U.S. ranchers and farmers can expect to increase their market share in China as a result of these actions.

China updated its list of U.S. facilities eligible to export distillers dried grains with solubles. In 2015, U.S. producers exported $1.6 billion worth of DDGS to China.

The U.S. Food and Drug Administration published a notice to facilitate the registration of animal feed manufacturing facilities for export to China. In addition, in response to delays caused by the COVID-19 outbreak, China announced a streamlined process for registering new U.S. feed products for export.

In addition, China’s tariff exclusion process is in effect, and many importers report that they are receiving tariff relief for purchases of U.S. food and agricultural products. USDA continues to publish guidance for U.S. exporters seeking to participate in this process.

Source: USDA, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset. 

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