Posts

U.S., China Finalize Details to Send U.S. Beef to China

June 12, 2017, Washington, D.C.– As part of the U.S.-China 100-Day Action plan announced on May 11, 2017 by U.S. Secretary of Commerce Wilbur Ross and Secretary of the Treasury Steven T. Mnuchin, the Trump Administration today has taken important steps toward commercial shipment of U.S. beef and beef products to China for the first time since 2003.  These shipments are results of the U.S.-China Comprehensive Economic Dialogue co-chaired by Secretary Ross and Secretary Mnuchin for the United States and Vice Premier Wang Yang for China.  Accordingly, the U.S. Department of Agriculture has reached agreement with Chinese officials on final details of a protocol to allow the U.S. to begin the beef exports to China.  Secretary of Agriculture Sonny Perdue today announced the posting of technical documents related to the beginning of shipments.

Secretary of Agriculture Sonny Perdue issued the following statement:

“Today is a great day for the United States and in particular for our cattle producers, who will be regaining access to an enormous market with an ever-expanding middle class.  Since he was elected, President Trump has brought momentum, optimism, and results to American agriculture families that we haven’t seen in years and this agreement is a great example.  I commend the hard work of Secretary Ross, Secretary Mnuchin, Trade Representative Robert Lighthizer, and our USDA representatives.  Without their dedication and persistence, this would have not been possible.  I have no doubt that as soon as the Chinese people get a taste of American beef they’ll want more of it.”

Secretary of Commerce Wilbur Ross issued the following statement:

“President Trump is doing more to improve the U.S.-China relationship than any president in decades, and this final beef protocol agreement represents even more concrete progress. As we clear away long-standing issues like this one, focusing on near-term, verifiable deliverables, we are building a sound foundation for further discussions.  I look forward to engaging with our Chinese counterparts as we address more complex issues to the benefit of both our nations.”

Secretary of the Treasury Steven T. Mnuchin issued the following statement:

“The ‎reopening of China’s market to American beef is an example of the results-oriented approach this Administration has taken in our engagement with China. We will continue to work toward a more fair and balanced economic relationship with China by expanding opportunities for U.S. workers and businesses.”

U.S. Trade Representative Robert Lighthizer issued the following statement:

“I welcome China taking this important step to start allowing U.S. beef imports after shutting them out over 13 years ago.  The President’s firm commitment to fair trade that benefits the United States has made this new U.S. beef export opportunity possible.  I encourage China and all countries to base their requirements on international standards and science.  America’s ranchers are the best producers of beef in the global economy, and they can compete and succeed wherever there is a level playing field.”

Background:

The USDA Agricultural Marketing Service (AMS) has posted the requirements for its Export Verification program for U.S. establishments shipping to China, which will enable packers to apply for approval to export to China.  The USDA Food Safety and Inspection Service (FSIS) has also updated its online Export Library specifying China’s requirements for certifying U.S. beef being shipped there.

China has emerged as a major beef buyer in recent years, with imports increasing from $275 million in 2012 to $2.5 billion in 2016. However, the United States has been banned from China’s market since 2003. The United States is the world’s largest beef producer and was the world’s fourth-largest exporter, with global sales of more than $5.4 billion in 2016.  Until the ban took effect, the U.S. was China’s largest supplier of imported beef, providing 70 percent of their total intake.

Following today’s announcement that the U.S. and China have finalized an agreement allowing for American beef exports, House Agriculture Committee Chairman K. Michael Conaway (TX-11) and Livestock and Foreign Agriculture Subcommittee Chairman David Rouzer (NC-07) made the below comments:

“As one of the world’s largest importers of beef, China has long-been an area of great opportunity for the U.S. beef industry. Well today that ‘great opportunity’ becomes a one step closer to reality for cattle producers across the country, hopefully bringing an end to a 13-year drought on beef exports to China. America’s ranchers raise the best and highest quality beef in the world, and I applaud the administration for its work to move this agreement across the finish line,” said Chairman Conaway.  

“Today’s announced agreement that U.S. beef producers will have access to China’s market, the world’s largest, is a major achievement. The opening of this market is estimated to be worth $2.6 billion for the U.S. beef industry, and I applaud the Trump administration in negotiating this great deal which will benefit our nation’s cattlemen, the agriculture community, and help grow our economy and create more jobs,” said Subcommittee Chairman Rouzer.

LINKS:

Several Initial Results of the 100-Day Action Plan of the U.S. – China Comprehensive Economic Dialogue

May 11, 2017, Palm Beach, FL – President of the United States Donald Trump and President of the People’s Republic of China Xi Jinping agreed at their Mar-a-Lago meeting to advance U.S. – China economic cooperation with a 100-day action plan under the framework of the U.S. – China Comprehensive Economic Dialogue. Under the leadership of the co-chairs, Secretary of the Treasury Steven T. Mnuchin, Secretary of Commerce Wilbur Ross of the United States and Vice Premier Wang Yang of China, both nations have negotiated intensively to make progress on key issues. The three co-chairs reached consensus on initial commitments under the 100-day plan and objectives for next steps.

In approximately one month following the Presidential Summit, the two sides reached consensus on addressing issues in areas including agricultural trade, financial services, investment, and energy. For details, see the U.S.-China joint fact sheet below.

Both sides also identified other issues that will require significant effort to resolve and achieve progress on within the 100-day period.  Both sides further committed to strengthen communication and coordination to jointly advance those issues and achieve resolution as soon as possible.  Further, as concrete progress is made in implementing the actions under the 100-day plan, the two sides will begin discussing a one-year plan to further solidify actions in promoting U.S. – China economic engagement and cooperation.  Following implementation of the 100-day plan, the United States and China look forward to deepening engagement on these and other issues at the first meeting of the Comprehensive Economic Dialogue, to be held in the United States in the summer of 2017.

Initial Actions of the U.S.-China Economic Cooperation 100-Day Plan

  1. Following one more round of technical consultations between the United States and China,  China is to allow imports of U.S. beef on conditions consistent with international food safety and animal health standards and consistent with the 1999 Agricultural Cooperation Agreement, beginning as soon as possible but no later than July 16, 2017.
  2. The United States and China are to resolve outstanding issues for the import of China origin cooked poultry to the United States as soon as possible, and after reaching consensus, the United States is to publish a proposed rule by July 16, 2017, at the latest, with the United States realizing China poultry exports as soon as possible.
  3. China’s National Biosafety Committee (NBC) is to hold a meeting by the end of May 2017, to conduct science-based evaluations of all eight pending U.S. biotechnology product applications to assess the safety of the products for their intended use.  No additional information unrelated to safety assessment for intended use is to be requested of the applicants.  For any product that does not pass the safety evaluation at the NBC meeting held in May 2017, the NBC is to operate with transparency by providing in writing to the applicants a complete list of requested‎ information necessary to finalize the safety assessment for the products’ intended use, along with an explanation of how the requested information would be relevant to the safety of the products’ intended use.  The NBC is to hold meetings as frequently and as soon as possible after an application is resubmitted in order to finalize reviews of remaining applications without undue delay. For the products that pass the safety evaluations of the NBC, China is to grant certificates within 20 working days in accordance with Administrative License Law of the People’s Republic of China.

U. S. Beef has been locked out of trade with China for more than a decade.  According to Wilbur Ross, Secretary of Commerce, the new relationship with China is one that is results-oriented and resolving of old aggravations.  Beef trade with China is a $2.5 Billion market which U.S. beef producers and processors value.