March 19, 2010

China reopens market to US pork

An agreement to reopen the Chinese market to US pork and pork products has been reached, Agriculture Secretary Tom Vilsack and US Trade Representative Ron Kirk announced Thursday (March 18).

Pork trade will resume immediately once both sides finalise the export documentation. China agreed in principle to remove its ban on US products in October, 2009.

According to USDA, negotiations to implement that agreement have been ongoing ever since. The US has repeatedly stressed the need for China to remove all restrictions on trade in pork products related to the AH1N1 virus because there is no risk to humans from consuming pork and pork products.

On Thursday, the Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China (AQSIQ) accepted the US proposal to resume exports of US pork, following meetings between Under Secretary for Farm and Foreign Agricultural Services James Miller, Assistant US Trade Representative for Agricultural Affairs Jim Murphy and Chinese officials in Beijing earlier this week.

In 2009, 20% of US pork production was exported. Prior to AH1N1 trade constraints, US pork and pork variety meats exports to China were valued at nearly US$275 million in 2008.

China was the US’ seventh largest market, accounting for 6% of US pork and pork variety meat exports.

Pork industry analysts, however, have cautioned that China's current pork import needs might not match 2008 levels, when China was hosting the Olympics and hog herds were reduced by disease and brutal weather. Since then, China has rapidly rebuilt its hog herd.

Earlier this week, a spokesman for the Chinese Ministry of Commerce said the government will take measures to stabilise pork prices, which have been falling due to excess supply.