March 28, 2024

Ag product purchases included in China-U.S. trade agreement

WASHINGTON — U.S. President Donald Trump and Chinese Vice Premier Liu He signed the first phase of a trade agreement Jan. 15.

As part of the agreement, China will increase its purchases of American goods and services by at least $200 billion over the next two years, which includes $40 to $50 billion in agricultural products.

Though China has confirmed it will increase its agricultural purchases, it has not publicly committed to a specific dollar amount, or indicated which products it plans to buy.

The document specifies that both China and the United States “shall ensure fair and equitable market access” for businesses that depend on the safety of trade secrets.

Specific measures that will protect pharmaceutical firms’ intellectual property, govern patents, block counterfeiting on e-commerce platforms and prevent exports of brand-name knockoffs are detailed.

In return, the United States will reduce tariffs on some products made in China, but keep duties the White House has imposed on $375 billion worth of merchandise.

Following the Phase 1 signing, $250 billion of Chinese imports will still be subject to a 25% tariff and $125 billion of Chinese goods will be under a 7.5% levy.

Agriculture-related highlights of the trade agreement include:

• China will purchase and import at least $40 billion of U.S. food, agricultural and seafood products annually over the next two years.

• China has agreed to streamline the regulatory process by implementing a predicable and science-based approval method for products of agricultural biotechnology.

• China will expand the scope of beef products allowed to be imported, eliminate age restrictions on cattle slaughtered for export to China, eliminate unnecessary cattle traceability requirements and provide for the establishment of maximum residue levels for three hormones legally used in the United States.

• China agreed to broaden the list of pork products that are eligible for importation to include processed products such as ham and certain types of offal. China also agreed to conduct a risk assessment for the veterinary drug ractopamine, which may be used in U.S. beef and pork production.

• China will immediately recognize U.S. Department of Agriculture oversight of U.S. meat, poultry meat and processed meat and poultry meat facilities, thereby eliminating any unique registration requirements and allowing imports of products accompanied by USDA certificates.

• Through the agreement, China will immediately engage in technical discussions for the import of U.S. live cattle for breeding.

• China has agreed to immediately update its list of traditionally-traded feed additive products with 23 U.S. products and to streamline the registration process for feed additives, premixes and compound feed. With regard to distillers’ dried grains with solubles, China has also agreed to speed up license renewal for DDGS manufacturers.

• China has committed to streamline the timelines and procedures for registering U.S. dairy and infant formula facilities and products and to provide regulatory certainty and market stability for products like fluid milk and dairy permeate powder.

“Together we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families,” Trump said.

“The agreement tears down major market barriers for U.S. food and agricultural exports. China will now welcome American beef and pork, poultry, seafood, rice, dairy, infant formula, animal feed, biotechnology and much, much more.”

The trade deal is the first phase of a comprehensive agreement that will be negotiated with China, according to the Trump administration.