April 19, 2006

 

US, China unlikely to finalise beef trade deal soon

 

 

US and Chinese negotiators are not likely to work out the terms of how China will ease its ban on US beef in time for an announcement this week during Chinese President Hu Jintao's visit to the US, US Department of Agriculture officials said.

 

USDA and Commerce Department officials said on Apr 11 that they expected those terms to be reached "quickly" when they announced China had agreed ease its ban.

 

The US group National Cattlemen's Beef Association (NCBA) raised hopes last week for a finalisation of the terms on the deal coinciding with Hu Jintao's visit.

 

But USDA officials said this week that will not likely be possible.

 

"We are in the process of getting all that arranged, but it would not be completed by the time of (Hu Jintao's) visit," a USDA official said. The official asked not to be named because of the sensitive nature trade negotiations with China.

 

The Chinese president is touring the US this week and is scheduled to meet with President George W. Bush on Thursday.

 

USDA Secretary Mike Johanns, when asked by reporters Tuesday, would not offer a prediction on how long it will take for China to begin importing US beef.

 

Gregg Doud, chief economist for the NCBA, said Tuesday he hopes negotiations with China do not become an "open-ended process".

 

Just last week, Doud said: "The Chinese market holds great potential for America's cattle producers ... We hope significant progress will be made on these issues before the state visit of Chinese President Hu Jintao on Apr 20."

 

China, along with most Asian countries, shut its borders to US beef in Dec 2003 in response to the first discovery of mad cow disease, or bovine spongiform encephalopathy.

 

Since then, Japan, once the largest foreign market for US beef, eased its ban in Dec 2005 only to shut down imports again in January after discovering prohibited material in a US shipment.

 

Hong Kong eased its ban on US beef in Dec 2005 to allow in boneless cuts so long as the beef came from cattle under 30 months old.