Update on Phase 1 Agreement Implementation

Posted on Tue, 03/24/2020 - 10:55

USDA and the Office of the U.S. Trade Representativie provided another update on progress toward implementing the ag-related provisions of the U.S./China Phase 1 Economic and Trade Agreement. In addition to actions detailed on Feb. 25 and March 10, the departments say the following actions have occurred:

  • 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. This action will help protect the increased access American farmers have gained in China’s poultry market. U.S. poultry exports have the potential to exceed $1 billion per year.
  • China notified the U.S. of proposed maximum residue levels for three hormones commonly used in U.S. beef production. This recognition by China of safe and science-based U.S. production methods particularly benefits trade with China in beef, a fast-growing market that imported $8.4 billion worth of beef products in 2019.
  • U.S. beef producers, for the first time since 2003, will have access for nearly all beef products into China. U.S. pork producers will also be able to significantly expand the types of pork products shipped to China. As 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. USDA estimates that American cattlemen could export up to $1 billion per year under this improved 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 of Chapter 3 of the U.S./China Phase 1 Agreement.
  • China updated its list of U.S. facilities eligible to export distillers dried grains with solubles (DDGS). In 2015, U.S. producers exported $1.6 billion worth of DDGS to China. This action, if coupled with the removal of other trade barriers, will allow U.S. exporters to recapture this market.
  • 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.