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China Trade Agreement Implementation Moving Ahead, U.S. Says

Wednesday, June 03, 2020
Sandler, Travis & Rosenberg Trade Report

The Department of Agriculture and the Office of the U.S. Trade Representative recently reported additional progress in the implementation of the agriculture-related provisions of the U.S.-China phase one trade agreement, which entered into force Feb. 14.

Press reports have indicated that President Trump may be reconsidering the phase one agreement for various reasons, including that, by some accounts, China has had difficulty meeting its obligations to purchase additional U.S. products due to the economic challenges associated with the COVID-19 pandemic. However, a joint USTR/USDA press release, while acknowledging that the pandemic has created “difficult times for both our countries,” emphasized the importance that “each continue to work to make our agreement a success.”

According to the press release, recent gains for U.S. producers include the following.

- U.S. blueberries and California Hass avocados can now be exported to China.

- U.S. barley for processing, along with the forage products timothy hay, alfalfa hay pellets and cubes, and almond meal pellets and cubes can now be exported to China.

- China has updated its lists of U.S. facilities eligible to export beef, pork, poultry, seafood, dairy, and infant formula products to China.

- China published May 15 a new domestic standard for dairy permeate powder for human consumption that will allow imports of this product from the U.S. in the future.

- China continues to implement its tariff exclusion process in an attempt to facilitate imports of U.S. commodities.

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