U.S. Meat Exports Face Threats as China Lets Plant Registrations Expire
The registrations for over 1,000 U.S. meat plants in China have expired, threatening U.S. exports worth approximately $5 billion amid ongoing trade tensions. Major producers are impacted, and the expiration could restrict market access significantly. The U.S. Department of Agriculture highlights China’s lack of response regarding renewals, violating trade agreements.
The export registrations for over 1,000 U.S. meat processing plants, as established by China under the 2020 “Phase 1” trade deal, have recently lapsed. This development presents significant risks to U.S. meat exports to China, the world’s largest importer, amid ongoing trade tensions. The General Administration of Customs in China indicated a change in registration status for pork, beef, and poultry plants to “expired.”
This lapse affects major producers such as Tyson Foods, Smithfield Packaged Meats, and Cargill Meat Solutions. The expiration applies to approximately two-thirds of the registered facilities and could hinder U.S. market access, projecting potential losses around $5 billion. This situation is compounded by retaliatory tariffs imposed by China on approximately $21 billion worth of American agricultural goods this month.
Though shipments from some plants that had registrations lapse are still getting through customs, the longevity of this practice remains in question, as China requires prior registration for food exports. The U.S. Department of Agriculture has expressed concern as China has not responded to requests to renew expired registrations, possibly breaching the terms of the Phase 1 trade agreement, which mandates an update to the approved plant list within 20 days of USDA updates.
In 2024, the U.S. ranked as China’s third-largest meat supplier, comprising 9% of China’s total meat imports at about 590,000 tons. U.S. meat exports to China were valued at $2.5 billion last year, marking it as the second-largest exporter. The loss of access to the Chinese market would be especially detrimental for exporters dealing in lesser-consumed parts such as chicken feet and pork offal. According to Smithfield Foods CEO Shane Smith, tariffs have made it increasingly difficult for U.S. pork processors to sell all portions of pigs, affecting offal exports predominantly.
In conclusion, the expiration of U.S. meat plant registrations in China poses substantial threats to American meat exports, especially amid existing trade tensions and tariffs. With potential losses of around $5 billion, the situation necessitates immediate attention from U.S. authorities to renegotiate and restore access to this critical market. The implications for exporters, particularly those dealing in niche products, underscore the urgency to address these registration issues promptly.
Original Source: www.tradingview.com
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