Beijing recently made U.S. poultry shipments eligible for exemptions from extra tariffs and poultry shipments to China are on the rise.
A Reuters article points out that the additional tariff relief may give China a greater ability to follow through on promises to buy significantly more American agricultural goods as part of the Phase One trade deal.
U.S. chicken producer Tyson Foods says its chicken shipments are already rising as a result.
China had said last month it would grant exemptions on retaliatory duties to 696 U.S. goods as part of its efforts to ease the trade war between the two largest economies in the world.
Jim Sumner, President of the USA Poultry and Egg Export Council, says U.S. poultry wasn’t eligible for the exemptions until last week.
“We’re now getting the product into the country without any retaliatory tariffs,” Sumner says.
Global meat and poultry suppliers are competing for sales to China, where an African Swine Fever outbreak has trimmed the hog herd by more than 40 percent, raising the need for protein imports.
Beijing removed an almost five-year ban on U.S. poultry imports in November, which U.S. Trade Representative Robert Lighthizer says would mean an additional $1 billion in shipments to China every year.
“We’re now on a level playing field with other poultry suppliers to China,” Sumner adds.