USDA and USTR Announce Continued Progress on Implementation of U.S.-China Phase One Agreement

USDA and USTR Announce Continued Progress on Implementation of U.S.-China Phase One Agreement

WASHINGTON, May 21, 2020 – The U.S. Department of Agriculture (USDA) and the Office of the U.S. Trade Representative (USTR) today announced additional progress in the implementation of the agriculture-related provisions of the U.S.-China Phase One Economic and Trade Agreement (The Agreement), which entered into force on February 14, 2020. Recent actions described below build upon the actions announced by USDA and USTR on February 25, March 10, and March 24. These are difficult times for both our countries. It is important that we each continue to work to make our agreement a success. Because of this continued progress due to the Agreement:

U.S. blueberries and California Hass avocados can now be exported to China. This new market access will provide California avocado growers and blueberry growers from around the United States with new opportunities to market their products to Chinese consumers in the coming years. In 2019, China imported a record volume of fresh fruits and vegetables exceeding $8.6 billion.

U.S. barley for processing, along with the forage products Timothy hay, alfalfa hay pellets and cubes, and almond meal pellets and cubes can now be exported to China. In 2019, China imported $1.5 billion of barley used as feed and for malt beverage production, and a record $500 million of forage products.

In recent weeks, China updated its lists of U.S. facilities eligible to export beef, pork, poultry, seafood, dairy, and infant formula products to China. China’s lists now include 499 beef, 457 pork, 470 poultry, 397 seafood, and 253 dairy and 9 infant formula facilities. As a result of these actions, more U.S. facilities are eligible to export U.S. food and agricultural products to China than ever before. USDA’s Food Safety and Inspection Service continues to update its export library, which provides additional guidance for U.S. meat and poultry meat exporters, including information related to the scope of products that may be exported to China, China’s labeling requirements, and other guidance.

China published on May 15 a new domestic standard for dairy permeate powder for human consumption that will allow imports of this product from the United States in the future. In 2019, China imported nearly $12 billion of dairy products from around the world.

China continues to implement its tariff exclusion process in an attempt to facilitate imports of U.S. commodities. USDA continues to publish guidance for U.S. exporters seeking to participate in this process (USDA Global Agricultural Information Network). USTR is continuing to process and where appropriate grant exclusions of products from China. USDA also is implementing its obligations under the agreement.

United States Secretary of Agriculture Sonny Perdue said, “China is a market of tremendous potential for U.S. agriculture and these actions will help U.S. exporters expand their sales there. We look forward to continued cooperative work with China on implementation of Phase One commitments, and immediate increases in U.S. exports of all manner of agricultural products.”

United States Trade Representative Robert Lighthizer said, “China has worked with the United States to implement measures that will provide greater access for U.S. producers and exporters to China’s growing food and agricultural markets. Under President Trump’s leadership, we fully expect this agreement to be a success.”