Weekly USMEF Audio Report: U.S.-China Agreement Expands Opportunities for U.S. Beef
DENVER, CO -January20, 2020 – China reopened to U.S. beef in 2017, but technical restrictions kept the cost of producing and processing China-eligible beef very high and made it difficult for the United States to gain market share. Travis Arp, U.S. Meat Export Federation (USMEF) senior director of technical services/access, says the U.S.-China “Phase One” trade agreement signed last week will ease or eliminate many of these restrictions and expand opportunities for the U.S. beef industry. He notes that China has committed to following international standards regarding hormone use, modifying its traceability requirements and removing the 30-month cattle age limit.
Arp explains how this will lower the cost of producing U.S. beef for the Chinese market, which is especially important because China still imposes retaliatory duties on U.S. beef. The total tariff rate for U.S. beef cuts is 47% compared to 12% for most other suppliers, 5% for Australian beef and zero for New Zealand beef.