Encouraging Trade Developments in Asia, but More Progress Needed with China
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President Trump held meetings with key Asian leaders this week, leading to progress in trade negotiations with several countries.
The Office of the U.S. Trade Representative (USTR) announced agreements on reciprocal trade with Malaysia and Cambodia and frameworks for agreements on reciprocal trade with Thailand and Vietnam. U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom notes that while Southeast Asia holds excellent growth potential for U.S. red meat, exporters face significant tariff and non-tariff barriers in the region. He explains that the agreements and frameworks announced by USTR represent progress in addressing these obstacles. This USMEF fact sheet provides more context and details the potential benefits to the U.S. red meat industry if improved market access is achieved in Southeast Asia.
President Trump also met Thursday with Chinese President Xi Jinping. While the White House has not yet officially released details from the meeting, China reportedly agreed to resume imports of U.S. soybeans and made other commitments aimed at easing U.S.-China trade tensions. While this is encouraging, Halstrom emphasizes that U.S. pork exporters still need relief from China’s retaliatory tariffs. On the beef side, the U.S. industry not only needs tariff relief, but China must also renew registrations for U.S. beef plants – nearly all of which are currently ineligible for China.
In another encouraging development, the U.S. paused for one year the additional fees recently imposed on Chinese-built-or-controlled vessels utilizing U.S. ports. China also agreed to pause the port fees imposed on U.S. ships in response. These fees increase costs for U.S. exporters and can negatively impact ocean carrier services.