Almost 1000 Export Registrations Set to Lapse
Hundreds of US meat plants that were granted access to China in a 2020 “Phase 1” trade deal with President Donald Trump are on the verge of losing their export eligibility. This situation poses a threat to roughly $5 billion in trade to the world’s largest meat market amid a renewed trade war, as reported by Reuters.
Losing access to China would deliver a fresh blow to American farmers, especially after Beijing recently imposed retaliatory tariffs on around $21 billion worth of American agricultural goods. These tariffs include a 10% duty on US pork, beef, and dairy imports.
Beijing mandates that food exporters must register with customs to sell their products in China. Registrations for almost 1,000 beef, pork, and poultry plants, including some owned by major companies like Tyson Foods and Cargill Inc, are set to expire soon, according to records from the US Department of Agriculture (USDA) and Chinese customs data. This accounts for approximately two-thirds of all registered plants.
The companies involved have either declined to comment or have not responded to inquiries from Reuters.
Despite repeated requests from US agencies, China has not responded to renew plant registrations, potentially violating an obligation under the Phase 1 deal. Registrations for around 84 plants already lapsed in February, and while shipments from these plants are still clearing customs, uncertainty looms over how long China will continue to allow imports.
Joe Schuele, a spokesperson for the US Meat Export Federation, expressed concerns over the risks associated with shipping products with an impending expiration date. He emphasized the severity of the situation if these plant registrations are not renewed, stating that every exporter is closely monitoring the issue.
The USDA has highlighted the expirations as a priority matter in discussions with Beijing, according to Schuele.
Furthermore, Shanghai port has implemented stricter inspections and documentation requirements for US meat cargoes, as communicated by the Federation to its members. Some containers are now subject to full unpacking and inspection, leading to longer processing times and additional fees.
It is important to note that there is no indication that Beijing is imposing a blanket ban. Several hundred plants have had their registrations renewed until 2028 or 2029, as confirmed by a senior diplomat based in Beijing.
Last year, the US was China’s third-largest meat supplier after Brazil and Argentina, accounting for 590,000 tons or 9% of total imports.
Both the USDA and the Office of the US Trade Representative did not respond to inquiries from Reuters on Thursday. Similarly, China’s Commerce Ministry and customs department did not provide responses to faxed questions. China’s foreign ministry redirected queries to other agencies without specifying which ones.
The Phase 1 trade deal, signed in 2020, aimed to end the first US-China trade war by committing Beijing to increase its purchases of US goods and services, including meat, by $200 billion over two years. However, China did not meet the agreed target due to the onset of the pandemic.
In the year of the deal signing, 1,124 beef, poultry, and pork processing plants or logistic facilities were registered with Chinese customs for export, granting them access to the world’s largest meat importer.
