US and Chinese trade agreements and their implementation are going to the World Trade Organization because the US believes China is unfairly using tactics to keep US poultry out of China.
“Let me be clear: the US does not arbitrarily seek disagreements with China,” said Ron Kirk, US trade representative, as he unveiled the grounds for the US action. “But we won’t negotiate indefinitely, because US farmers, ranchers, small business owners and workers can’t afford to wait when their exports are being blocked and American jobs are at stake.”
Open Topics on AgChat What is NASA's All American Meal? How do you think the UEP/HSUS agreement will play out? Will free trade agreements benefit all American agriculture? These and other questions were part of the AgChat conversation.
International Trade How do international free trade agreements affect family farmers? Who are the key trade organizations outside the US that ag businesses need to pay attention to? These and other conversations around international trade were discussed in this AgChat conversation.
Yes, China is a large market for US agricultural products. And this puts China in the driver's seat when US companies want to participate.
US farmers lose billions of dollars in sales each year because of China’s import restrictions on wheat, poultry, pork, cotton and other food and agricultural products, according to a recently released study from the US International Trade Commission. “China is our number one market for US agricultural product exports, but China’s unjustified trade barriers are blocking some of our goods such as wheat and beef,” Senate Finance Committee Chairman Max Baucus said in response to the new International Trade Commission study.
This study, published March 2011, describes government policies and other factors affecting "the conditions of competition in China’s agricultural market and trade".
According to the US Meat Export Federation data, Japan bought $1.602 billion worth of American pork and related variety meats in 2010, 67% more than the next-largest buyer, Mexico, and 98% more than the third largest buyer, Canada.
“The concern is how much damage to the ports they had” in Japan, Jim Burns, a CME hog trader, said March 14. “And infrastructure-wise, even when the ports are open, how much product can they get into the country… and how can they distribute it?”
The markets appear to be reacting to short term concerns. Many believe the meat markets will recover.
Iowa's pork industry is at a crossroads. Additional themes include new pricing levels of feed grains, regulatory revision and the impact of legislative and marketing changes. Will producers respond to today's pricing prompts with expansion (remember those empty barns down the road)? Or elect to go niche with local and immediate customer transactions for maximum profitability? These presentations from the 2011 Iowa Pork Congress helps provide perspectives and insights.