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IARN — The U.S. Meat Export Federation is looking at potential trade impacts stemming from China’s recently applied for membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP.
USMEF officials say the United Kingdom and Taiwan have also submitted formal applications to join the agreement, and other countries expressing interest include South Korea, the Philippines, Thailand, and Indonesia. USMEF’s Joel Haggard is based in Hong Kong. He discusses the potential impact of CPTPP expansion on red meat trade.
“Just looking at the narrow area of the meat trade, China already has FTA’s with Australia and New Zealand,” said Haggard. “Duties are zero for New Zealand and meat imports into China are already quite low for Australia, but exporters like Canada and Mexico would expect lower duties. There are other meat issues beyond tariffs. Australia currently has major access problems for some of its ag exports to China including beef. One would think those would have to be addressed. Suppliers may also demand more streamlined access procedures for meat plants such as under the U.S. China Phase One Agreement. The point is, China will have to address these market access demands from all members and for all commodities of interest. Members will be interested in hearing more details from China on how it proposes to meet this high free trade standard.”
Haggard says China is already the world’s largest meat importer and the market still has enormous potential for growth, so its application for membership holds significant appeal for prospective suppliers.
Other key issues CPTPP members must consider include the degree to which China is willing to reform state-owned enterprises and enforce intellectual property rights.
For more information, visit usmef.org.
Story courtesy of the Iowa Agribusiness Radio Network.
Photo courtesy of U.S. Meat Export Federation