After a case of mad cow disease showed up in the United States, several countries, including China, banned imports on USA beef in 2003.
Homegrown cattle herds are not keeping pace with the rising demand in the increasingly prosperous country.
American companies will be allowed to ship liquefied natural gas to China.
The deal reaffirms a September agreement to reopen China to USA beef exports.
Following technical consultations between China and the US, China is to allow imports of US beef on conditions consistent with worldwide food safety and animal health standards and consistent with the 1999 Agricultural Cooperation Agreement.
It is unclear exactly how much these new deals will increase trade between the two countries.
-China exchanges of goods previous year totaled almost $579 billion, almost one-sixth of all USA trade. It also grants more access to American credit rating agencies, bond underwriters and other financial service businesses. The deficit with China represented about 60 percent of the country’s total deficit previous year of $500.6 billion.
Some of the leading countries that export beef to China’s do have mandatory traceability, but it’s part of that country’s requirements.
“The Chinese and USA teams carried out almost 30 rounds of consultation to achieve the agreement”.
Historically, Brazil has been China’s major supplier, with a market share of more than 30%, followed by Uruguay and Australia. China’s Ministry of Commerce and National Development and Reform Commission had already proposed draft regulations in December that would have opened up that market.
China and the USA had previously committed to more market access on most of these trade issues over the years but implementation had been repeatedly delayed.
But trade experts questioned the magnitude of the deal. “The more beef we can export … will certainly have a positive effect on cattle prices funneled all the way down to North Dakota feeder calves”.
“I think we’re very happy with how we’re proceeding with the Chinese”, he added.
The statement didn’t appear to change access for Chinese companies to USA natural gas exports, but welcomed China to receive shipments and engage in long-term supply contracts with American suppliers. It’s also the deadline to finalize the rules for importation of cooked chicken products from China.
Miller, along with members of the U.S. Departments of Agriculture, Commerce, and Treasury, worked on a proposal, which China’s government agreed upon.
“That’s an open door for huge business potential for US companies”, said Shen Jianguang, chief Asia economist at Mizuho Securities. “The U.S. economy is not fundamentally based on Wall Street and farms, it’s based on advanced industries”.
Ross called the agreement a “herculean accomplishment” and argued the deal represented the biggest accomplishment in US-China trade negotiations “in the whole history of US-China relations”.
“Although the US team is new, they’ve settled in quickly and (their) adaptability is very strong”, Yu said.