The expiration of registrations for hundreds of U.S. meat plants threatens $5 billion in trade with China, amidst increasing tariffs and trade tensions. Nearly two-thirds of essential plant registrations are set to lapse, with significant economic consequences for the U.S. meat industry. China’s delayed response to renewal requests raises compliance concerns regarding the 2020 Phase 1 trade deal, potentially amplifying export risks for American farmers.

A prospective loss for hundreds of U.S. meat exporters looms as the eligibility provided by the 2020 “Phase 1” trade agreement with China appears to be expiring imminently. This situation threatens approximately $5 billion in trade to the largest meat market globally, coinciding with escalating tensions surrounding a renewed trade conflict. After China imposed retaliatory tariffs on around $21 billion worth of U.S. agricultural products earlier this month, including ten percent duties on pork, beef, and dairy, American farmers face a grave setback.

In compliance with Chinese regulations, food exporters must register with customs to maintain selling rights in China. Nearly one thousand U.S. meat plants, including prominent names like Tyson Foods and Cargill Inc., are facing registration expirations this Sunday, with almost two-thirds of these registrations set to lapse, based on data from USDA and Chinese customs. Responses from the affected companies have been sparse, with many declining to comment.

According to the USDA’s recent report, China has not yet responded to numerous requests from U.S. agencies concerning the renewal of plant registrations, raising potential compliance concerns regarding the Phase 1 agreement. Although shipments from some expired registrations have continued to clear customs, uncertainty looms over how much longer China will permit imports from these plants. U.S. Meat Export Federation spokesperson Joe Schuele emphasized the high risk associated with shipping products that face impending expiration.

The USDA has prioritized discussions about registration expirations with Beijing, highlighting the urgency of the situation. Additionally, the Shanghai port has implemented enhanced inspections and documentation requirements for U.S. meat shipments. This has led to increased processing times and additional logistical costs, affecting overall efficiency.

While there are no indications of a blanket ban on U.S. imports, reports suggest that several hundred plants have secured renewals of their registrations valid through 2028 or 2029. Last year, the U.S. was ranked as China’s third-largest meat supplier, constituting nine percent of total meat imports with an approximate quantity of 590,000 tons.

The Phase 1 trade agreement, enacted in 2020, had been designed to alleviate strains between the U.S. and China, with assurances from China to enhance procurement of U.S. goods, including meat. However, this target was not met due to the pandemic’s onset. Initially, in 2020, 1,124 meat processing plants were registered, allowing access to the Chinese market. Today, roughly 1,842 facilities are certified, yet the potential lapse of registrations could diminish this number significantly.

Under the Phase 1 deal, China is obligated to update its list of approved plants within twenty days following an updated submission from USDA’s Food Safety and Inspection Service. The existing delays in registrations bring the agreement’s adherence into question, raising concerns about the economic ramifications of potentially losing access to the Chinese market for U.S. exporters.

The impending expiration of registrations for numerous U.S. meat exporters underscores a significant threat to approximately $5 billion in trade with China, particularly amid escalating trade tensions. The USDA’s efforts to secure renewals for U.S. facilities signal the urgency of the situation, highlighting the critical need for compliance with the Phase 1 deal’s stipulations. Should registration lapses occur, the ripple effects on the American meat industry, especially for niche products, are likely to be severe.

Original Source: www.usnews.com

Related posts:

CBOT Soybean Futures Decline Amid Trade Concerns and Brazilian Harvest Progress U.S. Meat Exports to China Under Threat Due to Registration Expirations Impact of U.S.-China Trade Tensions on Brazilian Agribusiness Exports Brazilian Agriculture Faces New Opportunities Amid U.S.-China Trade Conflict