U.S. beef, pork could see improved access to China under trade discussions

U.S. beef and pork exporters could see improved access to the Chinese market as the United States and China continue working through broader trade issues.

High-level trade talks were held last week in conjunction with a summit between President Donald Trump and Chinese President Xi Jinping. While the discussions did not produce announced breakthroughs on trade, the U.S. Meat Export Federation (USMEF) is encouraged by the potential for agricultural products, including U.S. beef and pork, to receive more favorable treatment.

“There’s a couple of things that stand out,” said Dan Halstrom, USMEF president and CEO. “Number one, I think we’re especially encouraged that the two sides are really looking to separate trade between non-sensitive goods under the recently established U.S.-China Board of Trade.”

He said U.S. beef and pork, including variety meats, are expected to be among the products considered for more favorable treatment from a tariff standpoint.

“This also provides a path forward where we can maybe separate agriculture and specifically U.S. beef and pork from some of these other overlying high-level issues, whether they be Taiwan or anything else for that matter,” Halstrom said. “Currently our largest export market for pork variety meats is China, and we still have a 47% duty on U.S. variety meats going into China.”

Halstrom said reducing those duties would provide meaningful relief for U.S. exporters, particularly those marketing variety meats.

While tariffs have received considerable attention, Halstrom said the challenges facing U.S. beef and pork in China extend beyond duties. There are also a number of non-tariff barriers that affect market access.

Several U.S. beef processing and cold storage facilities remain suspended from exporting to China. Those facilities account for approximately half of U.S. fed beef processing capacity, according to USMEF. U.S. exporters also face testing and inspection requirements that can be onerous and inconsistent.

“The reality is that our issues are mainly scientific trade issues that have to be worked out,” Halstrom said. “The devil’s in the details, and I think this does provide us a path forward to get some clarification around some of the testing requirements that are required for U.S. beef and pork, for example.”

A technical agricultural working group under the U.S.-China Board of Trade is expected to meet before the end of the year. The group could provide an opportunity to address some of the specific technical issues affecting U.S. meat access.

Halstrom said USMEF appreciates the continued attention being given to those issues by the Office of the U.S. Trade Representative.

For U.S. livestock producers, expanded access to China could have implications well beyond the meat processing sector. Stronger export demand can support overall demand for livestock and provide additional market opportunities for producers.

“Cautiously optimistic is probably the tone,” Halstrom said. “But there is a path forward.”