Chinese trade issues see little improvement in annual report to Congress

by | Jan 5, 2015 | Audio, News

DES MOINES, Iowa – It’s tough to overstate the importance of China to the American agricultural economy; China is easily the largest export market for American agricultural goods, purchasing about $26 billion in American ag exports in 2013.

But each year, the Office of the U.S. Trade Representative (USTR) updates Congress with China’s progress on compliance to its obligations as a member of the World Trade Organization. This year’s report contains little improvement over last year, including continued trade-distorting domestic support programs and import requirements that lack transparency or scientific basis.

USTR believes much of that $26 billion in ag trade is due to “intensive engagement” with Chinese regulatory authorities, but notes that “seemingly capricious” customs practices continue, as do unclear regulations that make life difficult for ag commerce.

Biotechnology remains a sore spot, with delays on biotech approvals actually worsening overall as overdue applications remain in bureaucratic limbo. USTR does note, however, that China has agreed to an annual and multi-ministry dialogue with the United States to discuss science-based innovation in agriculture.

On the livestock front, China’s ban on U.S. beef persists, even though seven years have passed since the World Organization for Animal Health (OIE) has declared American beef and beef products safe to trade following the discovery of bovine spongiform encephalopathy (BSE) in American cattle. Also in 2014, U.S. poultry and other meats faced unwarranted or overly restrictive regulations, which USTR says curbed any anticipated growth on those products.

To read the full USTR report, click here. To hear more about the USTR report, click the audio player above this story.