August 5, 2010

 

China attaches multiple conditions to opening of beef market to the US

 

 

China has indicated its willingness to discuss the possibility of opening its market to US beef from cattle up to 30 months old, but only if the US agrees to several conditions, said a top US trade official this week.

 

USDA Under Secretary James Miller said that China has laid out roughly 20 different conditions for such market opening but said this represents the Chinese starting point for the talks. China banned US beef after a 2003 outbreak of bovine spongiform encephalopathy (BSE) in the US herd.

 

He said it was important to discuss the rationale behind these demands with China in order to advance the talks.

 

Miller also said that the US is working on more fully explaining to China what its expectations in the negotiations are. For instance, he said, the US has already outlined a general idea for a framework for discussions, but is now preparing a letter that will more clearly outline what the US expectations are for future negotiations.

 

This, in turn, will hopefully lead to technical-level and political-level talks in the coming months, including at a working group meeting scheduled for mid-September under the auspices of the Joint Commission on Commerce and Trade (JCCT), he said.

 

According to Miller, the US is insisting in the talks that China agree to ultimately adopt beef policies that are science-based and consistent with guidelines under the World Organisation for Animal Health (OIE).

 

The US is a controlled risk country for BSE, and OIE guidelines state that beef exports from such countries are safe from cattle of all ages provided that specified risk materials are removed.

 

Miller reiterated the Obama administration's willingness to agree to a more "incremental" approach in the short term provided China will ultimately endorse OIE guidelines. "We have already told them that it is our expectation that while we can exhibit some flexibility and use a phased-in approach, ultimately we need to have an agreement that does get them into compliance with international obligations," he said.

 

China in 2007 was willing to accept beef from cattle under 30 months of age, but the Bush administration rejected that approach because it did not fully endorse the OIE guidelines.

 

Canada announced a deal in June under which it will gain access to the Chinese market for beef from cattle under 30 months of age, although Miller said he was unaware of the details of that deal. The administration has come under pressure from US beef industry groups to accelerate talks with China, especially in light of the Canadian announcement.

 

Miller also said the US is accelerating efforts to negotiate beef market access in Japan, and that the administration is working on a letter to underscore the importance of identifying specific dates and venues and agenda items for resuming talks, which were suspended while Japan dealt with an outbreak of foot-and-mouth disease.

 

According to Miller, the two sides have not yet worked out the exact details on when technical discussions will resume. Japan currently accepts beef from cattle 20 months or younger. Miller said the new Japanese agriculture minister, Masahiko Yamada, has signalled he is willing to carry on the commitments of his predecessor to engage with the US on increasing market access.