April 12, 2006

China agrees to lift ban on US beef

China has agreed to lift a ban on US beef exports, according to a joint statement issued by US and Chinese officials.

The two sides promised to "work closely together" on final details to lift the ban which has been in place since 2003 when mad cow disease hit North America.

Before the ban, US beef exports to China were worth about US$100 million annually, making it a relatively minor market. However, US producers see strong growth potential because of China's booming economy and Chinese consumers' growing appetite for beef.

The lifting of the ban by China was seen as a move to placate US lawmakers concerned that trade deficit with China hit record highs last year.

US Secretary of Agriculture Mike Johanns said he was "very pleased" with China's decision to resume imports.  While terms have yet to be finalised, both sides have agreed that trade should resume "very quickly", Johanns said.

Chinese Vice Premier Wu Yi said at a news conference that the US deficit is an issue that the Chinese government is highly concerned about as well.