USMEF Statement on USTR's Proceeding on China’s Phase One Agreement Commitments

The Office of the U.S. Trade Representative (USTR) announced its initiation of a Section 301 investigation of China's implementation of the U.S.-China Economic and Trade Agreement, popularly known as the Phase One Agreement. USTR plans to examine whether China has fully implemented its commitments under the Phase One Agreement, the burden or restriction on U.S. commerce resulting from any non-implementation by China of its commitments, and what action, if any, should be taken in response.

U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued the following statement:

USMEF greatly appreciates USTR's focus on China's Phase One Agreement commitments. The U.S. red meat industry, and the beef industry in particular, was a tremendous beneficiary of President Trump's Phase One Agreement with China, which enabled annual beef exports to China to quickly grow from just $86 million to exceed $2 billion. Unfortunately, China has walked away from the Phase One, and has effectively closed its market to U.S. beef this year. The value derived from China benefits both American producers and consumers because China has a strong demand for items less consumed in the United States.

Without shipments to China and the premiums generated by bids from Chinese buyers, the U.S. beef industry is missing opportunities estimated at $150-$165 per head, or $4 billion annually. At a time of record-high costs of production, we are missing a top customer and unable to truly maximize the value of every animal produced. We appreciate President Trump's focus on rebuilding the U.S. cattle herd, and China upholding its Phase One commitments is an important driver of the herd rebuild.

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USMEF media contact: Joe Schuele [email protected]-547-0030