Brazil has suspended shipments of beef to China after discovering a case of bovine spongiform encephalopathy in its Mato Grosso state, according to a June 4 press release from the Brazilian Ministry of Agriculture. The agency suspended the issuance of sanitary certificates for shipments to China on June 4, effective for all shipments on or after May 31, the release said. The International Organization for Animal Health has already completed its evaluation of the case and found no risk of the spread of BSE, so exports of beef may continue to be shipped normally to other countries, the release said. The OIE declined to change Brazil’s disease risk status, which remains “insignificant,” the Agriculture Ministry said in another update.
Exports to China
The United Nations Security Council renewed sanctions against South Sudan for one year, the U.N. said in a May 30 press release. The sanctions keep an arms embargo on South Sudan, restricting member states from selling any arms-related materials to the country and withholding “training, technical and financial assistance related to military activities or materials.”
China opened an investigation into FedEx after it said the shipping company “failed to deliver” packages to certain addresses in China, state-media reported June 1. China suspects FedEx of “undermining the legitimate rights and interests of Chinese clients,” the report said, damaging the rights and interests of FedEx’s clients and violating industry laws.
China is investigating complaints from U.S. exporters about Chinese customs clearances, including accusations of slower processing, increased inspections and inexplicable delays in licensing approval, China’s Vice Minister of Commerce Wang Shouwen said during a June 2 press conference. Wang said he did not know if the complaints were about “a real or specific situation,” according to an unofficial translation of his comments, but some U.S. exporters allege the moves are another step in China’s 2018 threat to take retaliatory measures against the U.S. that extend beyond tariff hikes (see 1905290041).
The government of Canada issued the following trade-related notices as of May 31 (note that some may also be given separate headlines):
China is creating a list to penalize foreign entities that damage the interests of Chinese companies, a sweeping but vague move widely viewed as a direct response to U.S.’s recent blacklisting of Huawei Technologies.
The Trump administration, furious that Central American migrant asylum seekers continue to stream to the U.S., says that unless Mexico can "dramatically reduce or eliminate the number of illegal aliens" coming to the U.S., it will levy tariffs on all Mexican imports, starting June 10. The tariff will begin at 5 percent, go to 10 percent on July 1, and then increase by 5 percent each month until it reaches 25 percent on Oct. 1.
U.S. exporters and others expressed concern over President Donald Trump’s May 30 threat to impose new tariffs on Mexico, saying the move would lead to retaliatory measures and would significantly damage U.S. manufacturers and farmers.
The temporary general license issued by the U.S. after it added Huawei Technologies to its Entity List has offered “almost no relief” for the U.S. semiconductor industry, which has been hurt severely by the move, said John Neuffer, president and CEO of the Semiconductor Industry Association. Speaking on U.S.-China trade issues at a Washington International Trade Association discussion on May 29, Neuffer underscored the importance of the Chinese market to U.S. semiconductor exporters and called on the Trump administration to more tactfully negotiate with China. “We would like the U.S. government to better balance its national security concerns with its economic security concerns,” Neuffer said.
China bought about 13 million metric tons of American soybeans since December, when President Donald Trump decided to hold tariffs at 10 percent on List 3 of the Section 301 actions. But according to a new report from Bloomberg, those purchases have stopped. Officials told Bloomberg reporters that previously contracted sales will be honored. China may need fewer soybeans from any source because of the African swine flu epidemic crimping demand for livestock feed, the report noted.