China Not Standing By Phase One Commitments
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The U.S. Trade Representative (USTR) has launched a Section 301 investigation of China’s implementation of the U.S.-China Economic and Trade Agreement, popularly known as the Phase One Agreement. A public hearing on that investigation will open Dec. 16. More details are available in this Federal Register notice.
U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom notes the Phase One Agreement, negotiated during the first Trump administration, delivered tremendous benefits for the U.S. beef industry and expanded the footprint for U.S. pork in China. U.S. red meat exports to China thrived under Phase One, reaching more than $3.5 billion 2022. Exports were also robust in 2023 and 2024.
But as Halstrom points out, China is no longer adhering to the terms of the Phase One Agreement, particularly when it comes to U.S. beef. China has refused to renew registrations for U.S. beef plants and cold storage facilities, effectively closing the China market for U.S. beef. USMEF estimates industry losses resulting from lack of access to China to be about $150 per fed head slaughtered.
U.S. pork, meanwhile, has access to China but faces a 47% tariff, which weighs heavily on export volumes. China is an especially critical market for U.S. pork variety meat.
USMEF submitted comments to USTR for its Section 301 investigation, which are available here.