Published: Mon, May 22, 2017
Economy | By Melissa Porter

Overblown claim on new China trade deal

Under the agreement announced by both nations, China will authorize U.S. beef imports by July 16 while the United States will lift barriers on Chinese cooked poultry exports "as soon as possible". The conditions must be consistent with global food safety and animal health standards and the 1999 Agricultural Cooperation Agreement.

In financial services, China said it would begin allowing wholly foreign-owned financial groups to offer credit rating services in China by July 16. That's the deadline for resuming beef exports to China.

"It's impossible to overstate how beneficial this will be for America's cattle producers, and the Trump Administration deserves a lot of credit for getting this achieved", National Cattlemen's Beef Association president Craig Uden said in a statement.

Based on data from Japan, the world's biggest importer of USA beef, Evans-Pritchard estimated that the beef element of the deal could reduce the deficit by $3.5 billion at most.

A new trade deal will allow US beef and natural gas exports to flow into China while opening up the US market for cooked poultry and Chinese banks, the US Commerce Secretary announced Thursday.

Trump lashed out at Beijing throughout his presidential campaign, vowing to crack down on trade policies that he deemed hurt American workers.

"As noted in the U.S".

Restoring trade with China would give USA beef access to 1.4 billion new customers - a fifth of the world's population - and a middle class that is larger than the entire population of the US, he said.

The agreement would also ease import restrictions on agricultural goods, including ending China's ban on beef imports, which was imposed in 2003 after a case of mad-cow disease.

The US in exchange will allow cooked Chinese poultry to enter US markets. China's main concern is BSE, and the negligible risk status of the US addresses that concern, Bacus said.

Though a decent start, it won't do much to reduce Uncle Sam's trade deficit with China, which stood at almost $350 billion in 2016 - and which widened in March. China is the second largest consumer of beef in the world.

China's 1.37 billion residents are projected to eat roughly 17.6 billion pounds of the meat this year, according to the U.S. Department of Agriculture's Foreign Agricultural Service.

In return, the US and China are to resolve outstanding issues for the import of China-origin cooked poultry to the soon as possible after reaching consensus. "This is really great news for the cattle producers and we appreciate the Trump administration for prioritizing USA beef".

The US also signaled that it was eager to export more liquefied natural gas, saying China could negotiate any type of contract, including long-term contracts, with US suppliers.

The Trump administration hopes this initial trade deal helps "bring down" the us trade deficit with China - something President Trump emphasized on the campaign trail. With just one more round of technical consultations between the U.S. and China, American beef will once again be China-bound.

"This has been a day the cattle farmers across the country have been waiting for", Crutcher said. On May 4, Commerce Secretary Wilbur Ross called out Mexico and Japan for their trade surpluses with the United States, which he said were growing at "an alarming rate". And it's not the first time China has said it was opening the door to USA beef - they have been saying they would do so for 14 years now. But the market in China is the most important to the Export Council, he says.

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