China satisfying Phase One trade commitments

by | Mar 23, 2020 | 5 Ag Stories, News

Grain and livestock producers last week felt coronavirus’s impact. This week, however, we deliver positive news, which should benefit each sector greatly in the near- and long-term.

U.S. Department of Agriculture officials on Friday reported export sales of 756,000 metric tons of corn and 110,000 metric tons of soybeans for delivery to China during the 2019/2020 marketing year. Additionally, officials noted export sales of 340,000 metric tons of hard red winter wheat for delivery to China during the 2020/2021 marketing year.

United States livestock producers also received uplifting news.

The U.S. Department of Agriculture – Food Safety and Inspection Service (FSIS) on Friday updated its Export Library for China to reflect expanded access for United States beef and pork.

U.S. Meat Export Federation (USMEF) senior vice president for the Asia Pacific Joel Haggard anticipates larger volumes of United States beef for delivery to China, under the new eligibility guidelines.

?All beef and beef products, including processed beef items, from cattle of all ages will be eligible to ship to China. And China has (also) moved toward the adoption of international standards by establishing maximum residue levels for commonly used hormones in cattle production. They also recognize the efficacy of the USA?s traceability system,? Haggard said.

Haggard applauds China for pursuing its trade obligations during the public health crisis. He believes American beef producers can meet the needs of the largest beef importing country, especially as China allows importers to apply for relief from retaliatory duties.

“The U.S. has faced a flurry of challenges for its beef exports to China since the market reopening. Import conditions were strict, and U.S. products faced high duties – At one point, 47-percent compared to mid single digits for our main competitor. Another tailwind that should help us to propel into China is importers, in mid-February, were afforded an opportunity by China’s Tariff Commision to apply for duty exclusions. We heard shipments being cleared at the old, 12-percent MFN duty rate just a day after those applications were allowed to be submitted.”