U.S. Pork, Beef Go to China

April 4, 2000

Air freighted shipments of U.S. beef and pork ribs and sausages have left San Francisco for Shanghai – the first shipments of both products to China under the new rules China published recently. National Pork Producers Council President Craig Jarolimek calls it "only a trickle compared to what pork producers can expect once China gains membership" to the World Trade Organization. The House votes on that before May 29.

National Cattlemen’s Beef Association President George Hall said, "We have begun – but we have just begun – to tap the potential for U.S. beef trade with China. Chinese officials are taking the steps to make this trade agreement work. Now it’s up to the U.S. Congress to do its part and approve permanent normal trade relations with China so that U.S. beef can be competitive in that market."

The shipments were made possible after China published rules implementing the bilateral agreement on agriculture with the United States. The rules allow any Chinese importer to import pork and beef from any federally inspected U.S. plant.

"China will become a WTO member with or without U.S. support," said Jarolimek, "but unless Congress votes yes on permanent normal trade relations, pork producers in Denmark, France and Canada will take advantage of reduced tariffs that won’t be available to American producers. It would be ironic and shameful to see American producers locked out of a market American negotiators had opened so skillfully."

Under the agreement, China’s tariffs on beef and pork will be phased down to 12% over time from 45%. NCBA believes this will expand beef exports to China from the current 23,400 metric tons to more than 70,000 tons by 2005.

"Per-capita consumption of pork in China already is as high as per-capita consumption in the Untied States, and most analysts expect future demand for pork in China to grow rapidly," Jarolimek said. "But even if demand grows by only a modest 3% a year, that incremental increase in demand would represent twice the level of current U.S. pork exports."