November 4, 2009

The US and China agreed to relax restrictions on agriculture ahead of President Barack Obama's first visit to Beijing next month.

The two sides had made solid progress that helped both countries achieve balanced and sustainable growth, US Trade Representative Ron Kirk said Thursday (Oct 29) at the end of a meeting of the US-China Joint Commission on Commerce and Trade (JCCT).

The two sides would jointly oppose trade and investment protectionism, said Chen Deming, China's commerce minister

As China and the US are each other's second-largest trading partners, the ties are strained by a US$147.3 billion trade surplus in China's favor, based on numbers through August.

The imbalance carries risks for each side and sets the economic backdrop for the summit in Beijing.

Chen said the solution was not to restrict imports from China but to promote balance.

The JCCT is a forum for dealing on detailed trade items, and the agreements announced Thursday could have important implications for individual sectors.

Agriculture was a highlight, with agreements paving the way for the resumption of US pork exports to China, which were halted in May on Chinese fears about AH1N1. US pork exports to China had been growing quickly, reaching US$560 million last year.

In exchange, the US agreed to ease a six-year-old restriction on Chinese poultry exports to the US.

The lifting of the pork ban could result in a modest rise in sales, said industry participants. China has increased domestic production and likely won't need to import US pork.