US president Donald Trump and Chinese vice premier Liu He have signed a preliminary trade agreement that will see more American farm products and machinery sold to Chinese customers.
According to the agreement, China shall ensure additional purchases of US agriculture products by US$32 billion over 2 years, including US$12.5 billion above the corresponding 2017 baseline of US$24 billion in 2020 and US$19.5 billion above the baseline in 2021.
China’s need for feed and feed ingredients has increased as its livestock sector has increased. US manufacturers have, however, had difficulty registering new feed products and facilities with Chinese authorities. In addition, exporters of DDGS face burdensome product licensing procedures resulting in export delays. The Phase One agreement addresses these issues and provides US companies streamlined access to the Chinese market, according to the US Trade Representative.
“The Phase One economic and trade agreement signed on 15 January 2020 will provide US manufacturers of feed additives, premixes, compound feed, and distillers’ dried grains with solubles (DDGS) streamlined processes for registration and licensing to facilitate US exports to China,” according to the US Trade Representative, adding that the agreement will also result in new import protocols for US barley, alfalfa hay pellets and cubes, almond meal pellets and cubes, and timothy hay, allowing imports of such products into China.
China has agreed to negotiate protocols to allow imports of additional feed products. China has agreed to:
Both parties have agreed to continue technical consultations concerning facilitation of trade in grain and oilseed products for both feed and further processing.
In terms of new facilities, the US will provide updated lists of facilities producing feed additives, premixes, compound feed, and DDGS to GACC, and China will publish the updated lists on GACC’s website within 20 business days of receipt.
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The agreement will also provide US manufacturers expanded access to China’s rapidly growing market for dog and cat food. In recent years, US pet food exports were limited due to animal health restrictions on US products containing poultry or bovine ingredients. In addition, it is onerous to register new facilities with Chinese authorities. The agreement addresses all of these issues, and China has agreed to:
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China has also agreed to not require any routine audits or inspections of US feed additive, premix, compound feed, DDGS, pet food and non-ruminant derived animal feed facilities. However, in accordance with international standards, China may perform risk-based audits in coordination with the relevant US authority. China may also conduct inspections of a risk-based selection of shipments of US animal feed products, pet food and non-ruminant derived animal feed at the port of entry. China will notify the US if it intends to restrict imports from a particular facility.
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