China Making Progress Toward Purchase Commitments on US Ag, USTR Says

China has taken “numerous actions” to begin implementing its agricultural purchase commitments under the U.S-China phase one trade deal, the Office of the U.S. Trade Representative said Feb. 25. China recently announced it will allow imports of U.S. “fresh chipping potatoes” (see 2002240011), lifted an import ban on U.S. poultry and poultry products (see 1911140019) and lifted restrictions on certain pet food imports (see 2002240010) from the U.S. China also updated its list of facilities approved for exporting animal protein, pet food, dairy, infant formula and tallow, updated the list of goods that can be exported to China as feed additives and updated an approved list of imported U.S. seafood species.

The USTR also highlighted Chinese announcements related to tariff exclusions for U.S. imports subject to its retaliatory tariffs (see 2002180039) and a reduction of retaliatory tariff rates on certain U.S. agricultural goods (see 2002060033). Those actions will help China’s “progress toward meeting its Phase One purchase commitments,” the USTR said.

USTR Robert Lighthizer said the U.S. expects to see “significant benefits” for U.S. agriculture exporters this year. The U.S. is “encouraged by progress made last week,” Lighthizer said in a statement. “We fully expect compliance with all elements of the deal.”

But the spread of the coronavirus has led to doubts, including from a top White House adviser (see 2002120043), about whether China can fulfill its purchase commitments in the short term. U.S. agriculture exporters have faced significant delays at Chinese ports, creating problems specifically for refrigerated goods (see 2002120050), which China has said has stymied the country’s ability to trade. Chinese companies are facing a range of logistical issues due to the virus, including “difficulty in receiving orders, difficulty in fulfilling contracts, poor international logistics, and increasing trade barriers,” a Commerce Ministry official said during a Feb. 25 press conference, according to an unofficial translation of the transcript.

Although its ports are crowded and its shipping industry is hampered by virus-related delays, the official said the impact on trade will be “temporary.” In addition, the U.S.-China Business Council expects trade to eventually “return to normal” (see 2002100028). China is also urging countries, specifically World Trade Organization members, to remove “unnecessary restrictions” on trade due to the virus. “We will go all out to achieve the goal of stabilizing and improving foreign trade throughout the year, and promote high-quality trade,” the official said.