Beijing Lifts Ban on US Beef Exports in Bilateral Trade Talks

Strategic Insights -

Beijing has agreed to lift a long-standing ban on US beef exports, a significant step forward in bilateral trade talks between the two nations. As part of the agreement, China will reopen its market to US beef once a technical protocol is completed. This move comes as part of a broader range of measures aimed at easing US concerns on the trade front. Vice Premier Wu Yi, leading a 200-strong business delegation to the US, also announced that China would consider launching talks to join a World Trade Organization (WTO) agreement on government procurement, among other initiatives.

Key Takeaways:

  • Beijing has agreed to lift the ban on US beef exports, subject to completion of a technical protocol.
  • The ban has been in place since 2003 due to concerns over mad cow disease in North America.
  • China has agreed to reopen its market to US beef, which is expected to be worth around $100 million annually.
  • The Chinese government has also agreed to consider joining a WTO agreement on government procurement.
  • Vice Premier Wu Yi led a 200-strong business delegation to the US, signing 107 contracts with US companies worth a total of $16.2 billion.
  • The delegation included 150 CEO-level leaders from China's booming economy, covering sectors such as electronics, auto parts, and software.

Statistics:

  • China imported around $100 million of US beef annually before the ban, making it a relatively small market.
  • The ban on US beef exports has been in place since 2003.
  • China has agreed to consider joining a WTO agreement on government procurement.
  • 107 contracts were signed with US companies worth a total of $16.2 billion.
  • The deal to purchase 80 next-generation 737 planes from Boeing is valued at $4.6 billion.
  • China has also agreed to buy 150 planes from rival Airbus's SAS in a deal worth over $9 billion.

Sources:

  • Asia Pulse, "Beijing Lifts Ban on US Beef Exports in Bilateral Trade Talks" (April 12)
  • [XIC], "China, US Sign Deal on $16.2 Billion in US Contracts" (April 12)