China trade agreement impacts meats, natural gas
US industry groups value the Chinese beef-import market at about $2.6 billion.
The United States and China have struck a deal that will see Beijing lift a ban on US beef, allow imports of liquefied natural gas and increase access for USA financial firms.
China stopped importing US beef in 2003 when mad cow disease became a problem for some herds. China will allow USA imports of beef no later than July 16, while the United States will issue a proposed rule to allow Chinese cooked poultry to enter US markets.
Tyson Foods Inc, Cargill Inc and JBS are among the biggest exporters of USA meat.
In Beijing, Vice-Finance Minister Zhu Guangyao told reporters there had been “nearly 30 rounds of talks to agree on the 10 important points of consensus”.
The deal lowers barriers on US beef and liquefied natural gas exports to China as well as on some other goods and services. “We look forward to providing almost 1.4 billion new customers to China with the same safe and delicious USA beef that we feed our families”.
“This will help us to bring down the deficit for sure”, Sec.
The Secretary is confident that the Chinese market will be open soon and it will be a huge boost to the USA beef industry.
“It remains to be seen how much of these turn into real market access”, Meltzerd said.
Huang Rihan, a researcher at the Centre for China and Globalisation in Beijing, said the agreement put an end to worries about a “trade war” between China and the US. If the two titans become more allied economically, that could also affect the bilateral free trade agreement the USA seeks to forge with Japan.
The North American Meat Institute commended the administration today following the announcement of a deal with the Chinese government to resume imports of US beef effective July 16, 2017.
The deal will also allow Chinese companies to buy liquified natural gas from the United States. “This signals to the world that China and the USA are coming together for joint development”.
Beijing and Washington also said Thursday that they will open a comprehensive economic dialogue this summer with the aim of working out a yearlong plan.
Crutcher said Kentucky is the largest beef cattle producer east of the Mississippi River with more than 1 million beef cows.
“We are excited about USA trade policies and I think you probably saw we made an announcement of a 100 day economic plan with the Chinese so I think we’re very happy with how were proceeding with the Chinese”, Mnuchin said. China has a long history of formally granting market access but then effectively blocking it by controlling how Chinese firms conduct business, or by other informal restrictions on how foreign companies can operate.
Shares of U.S. Steel (X.N), which have taken a dramatic fall after soaring the wake of Trump’s election, dropped 1.9 percent on Friday, while shares of Nucor (NUE.N) were off 0.3 percent.
The last item of 10 listed in a joint statement says a US delegation will attend an global gathering in Beijing, beginning Sunday, that will showcase a plan by President Xi Jinping to invest in vast networks of ports, railways and roads in a bid to expand China’s trade with Asia, Africa and Europe.