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Almost 1000 export registrations set to lapse
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China not responding to US government renewal requests
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$5 billion in US meat exports to China at risk
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Potential meat export snag comes amid renewed Sino-US
trade spat
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Stricter checks at Shanghai port raise costs for US meat
exporters
By Tom Polansek, Mei Mei Chu and Laurie Chen
CHICAGO/BEIJING, March 14 (Reuters) - Hundreds of U.S.
meat plants granted access to China in a 2020 "Phase 1" trade
deal with President Donald Trump are set to lose export
eligibility on Sunday, threatening roughly $5 billion in trade
to the world's largest meat market amid a renewed trade war.
Losing access to China would deal a fresh blow to American
farmers after Beijing earlier this month imposed retaliatory
tariffs on some $21 billion worth of American agricultural
goods, including 10% duties on U.S. pork, beef and dairy
imports.
Beijing requires food exporters to register with customs to
sell in China. Registrations for almost 1,000 beef, pork and
poultry plants, including some owned by Tyson Foods and
Cargill Inc, are set to expire on Sunday, according to
U.S. Department of Agriculture (USDA) records and Chinese
customs data. That's roughly two-thirds of all those registered.
The companies declined to comment or did not respond to
Reuters questions.
China has not responded to repeated requests from U.S.
agencies to renew plant registrations, the USDA said in a report
last week, potentially violating an obligation under the Phase 1
deal.
Registrations for some 84 plants lapsed in February and
while shipments from affected plants continue to clear customs,
the industry doesn't know for how long China will allow imports.
"The risk involved in shipping product with a looming
expiration date is high," Joe Schuele, spokesperson for the U.S.
Meat Export Federation told Reuters.
"The situation is certainly dire if [registrations for]
these plants are not renewed. The situation has the attention of
every exporter."
The USDA has made the expirations a priority issue in
discussions with Beijing, Schuele added.
Shanghai port has also imposed stricter inspections and
documentation for U.S. meat cargoes, the Federation told members
in a bulletin seen by Reuters, with some containers subject to
full unpacking and inspection, raising processing time and
additional fees.
To be sure, there are no signs to suggest that Beijing is
imposing a blanket ban. Several hundred plants have had their
registrations renewed until 2028 or 2029, according to a senior
diplomat based in Beijing.
The U.S. was China's third largest meat supplier last year
after Brazil and Argentina, accounting for 590,000 tons or 9% of
total imports.
The USDA and the Office of the U.S. Trade Representative did
not respond to questions from Reuters on Thursday. China's
Commerce Ministry and customs department did not respond to
faxed questions.
China's foreign ministry redirected questions to other
agencies without naming any.
The "Phase 1" trade deal, signed in 2020, ended the first
U.S.-China trade war with a pledge from Beijing to boost its
purchases of U.S. goods and services, including meat, by $200
billion over two years. China didn't reach the target, which was
agreed shortly before the pandemic hit.
That year, 1,124 beef, poultry and pork processing plants or
logistic facilities were registered with Chinese customs for
export, according to USDA, gaining access to the world's largest
meat importer. There are 1,842 facilities certified today, but
slightly less than half will remain if Sunday's batch of
registrations lapse.
China is obligated under the Phase 1 deal to revise its
approved plant list within 20 days of receiving updated lists
from USDA's Food Safety and Inspection Service, according to the
Meat Institute, an industry group for U.S. meat processors. It
is unclear whether the current delays constitute a violation of
the deal.
The potential impact from lapsed licenses could total up to
$4.13 billion for the beef industry and $1.3 billion for pork,
the U.S. Meat Export Federation said in a daily bulletin.
Loss of access to China would be an especially hard blow for
exporters of parts like chicken feet and pork offal, which are
consumed less domestically.