March 7, 2020

US poultry shipments to China increased due to tariff exemptions

Tariffs have not been imposed on US poultry products exported to China, as poultry has been added to a list of agricultural good exempted from China's extra duties, reported Reuters.

The extra tariff exemptions could help China with its pledge in the US-China Phase 1 trade deal to purchase more agricultural goods from the United States. 696 goods in total have been exempted from retaliatory tariffs.

Jim Sumner, USA Poultry and Egg Export Council president said poultry from the United States were not granted tariff exemptions until this week. He said importers based in China have been granted 30% retaliatory tariff exemptions, down from 35% initially.

After an African swine fever outbreak in China which had decimated more than 40% of the country's swine herd, China had approved more meat import sources globally to supplement dwindling stocks and created a global race to supply meat to the country.

In November, China lifted a ban on US poultry meat imports. At the time, the US Trade Representative said this might result in an additional US$1 billion in yearly shipments to China.

Sumner said the US poultry industry is now on par with other poultry exporter to China. He believes China has removed the tariffs because it may delay imports.

Tyson Foods said its poultry imports to China have increased after the tariff exemptions.

Joe Sanderson, Sanderson Farms chief executive said the company had exported 18 million pounds of chicken products to China, inclusive of 137 loads of dark meat and 283 loads of chicken meat after the ban was lifted.

Transport restrictions imposed due to COVID-19 have eased with port logistics gradually resuming normal operations.

-  Reuters