December 16, 2010

 

US builds beef trade agreement with China

 

 

US and China has just concluded a two-day talk that produced results that would benefit US companies ranging from manufacturers of computer software and wind turbines to beef producers, said the Obama administration, Wednesday (Dec 15).

 

The agreements touched on areas that have been the source of sharp discord between the two nations, and which a series of US administrations have failed to resolve.

 

Those areas include rampant piracy of US intellectual property and China's continued barriers to American beef.

 

Commerce Secretary Gary Locke hopes this week's deals will set the stage for even more extensive agreements when Chinese President Hu Jintao visits Washington in January.

 

Agriculture Secretary Tom Vilsack said that the Chinese had agreed to allow American beef exports back into China on a staged basis and he hoped the first shipments would be made in early 2011. A team from the Department of Agriculture will visit China in early January in an effort to clear up remaining inspection issues, he said.

 

China imposed a ban on all beef imports from the US over concerns about mad cow disease a number of years ago.

 

Beijing later lifted the outright ban but the US has been unable to overcome continued barriers involving the inspection of the beef.

 

Chinese Vice Premier Wang Qishan said that during this week's talks China reaffirmed its desire to allow the resumption of American beef imports from animals under the age of 30 months.

 

The two countries also signed seven new deals covering such areas as agricultural trade, including US soy exports to China, and the promotion of investment in the US.

 

American manufacturers contend China is keeping its currency undervalued by as much as 40% to make Chinese goods cheaper in the US and American products more expensive in China.

 

The administration has been pressing the Chinese to move more quickly to allow the yuan to appreciate in value against the dollar. But since Beijing pledged increase currency flexibility in June, the yuan has risen in value by only about 3%.

 

The US House passed legislation in September that would give the government more powers to impose tariffs against products from China and other countries found to be manipulating their currencies.

 

The Senate has yet to take up the legislation although supporters are vowing to get a vote on the issue before lawmakers adjourn for the year.