United States and China Take First Steps in Trade Deal

Ross sits for an interview in his office in Washington

U.S. Commerce Secretary Wilbur Ross sits for an interview in his office in Washington

Beijing had announced an end to a 14-year embargo on American beef last year, but the decision has yet to be implemented. -China Economic Cooperation 100-Day Plan, U.S. beef access in China remains one of the priorities for both countries.

In one of the actions laid out under the agreement, by July 16, China agreed to issue guidelines that would allow us -owned card payment services "to begin the licensing process".

Some analysts, however, question how quickly U.S companies will feel the benefits in China, where foreign companies have long reported difficulty penetrating the domestic market.

A new trade deal between the USA and China will allow the U.S.to break back into that beef market. "USMEF and its members greatly appreciate the efforts of the Trump administration and officials at USDA and USTR", said a statement. The move would allow China to diversify its supply and provide a significant market for American suppliers - though the expansion could boost prices for USA consumers. The U.S. industry has some voluntary traceability programs but doesn't want a mandatory program that would put overly burdensome restrictions on producers who choose not to produce beef for China, he said. "We will be reaching out to our state's beef community to ensure that we continue to position Nebraska to play a key role in the Chinese market".

Exports account for more than $300 per head of finished beef cattle slaughtered in the US, and that value will continue to grow with China in the market.

Meanwhile, the USA will support Chinese procurement of liquefied natural gas and send representatives to attend China's Belt and Road Forum in Beijing, which begins Sunday.

"This will let China diversify, somewhat, their sources of supply and will provide a huge export market for American LNG producers", Ross said.

The market for beef in China is estimated to be worth $2.6 billion, a potential goldmine for Nebraska, the nation's top state for cattle on feed with $1.126 billion in beef exports a year ago alone.

Uden said there'll likely be some adjustments in US production but the industry is entrepreneurial and will find a way if there's value to be had. -China trade deal opens China to USA beef & gas, but unlikely to have large impact on trade deficit.

According to Forbes, beef is the 100th largest export for the U.S.in the first three months of 2017. With just one more round of technical consultations between the US and China, American beef will once again be China-bound. "We've demonstrated that for years with other markets around the world".

Vice-Commerce Minister Yu Jianhua said the agreement altered the expectation of a possible trade war between the two sides, adding that stable China-US relations will be a "positive force" for the recovery of the global economy. More demand for their product will allow for an increase in prices.

Ker Gibbs the American Chamber of Commerce in Shanghai chairman said the new measures were a good start but did not represent a breakthrough. Beijing had already made a decision to lift the import ban on American beef in September, before Trump was elected. "Clearly both leaders are more interested in getting things done, rather than talking about them", said Prof Zhao, a United States expert from Tsinghua University. "If you look at it on a historical basis, there's plenty of room to go back up", he said.

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