Beef Buzz News
If Trade Rules for US Beef Are Relaxed in US-China Phase One Deal- Erin Borror Sees Mind-Boggling Trade Ahead
Tue, 07 Jan 2020 07:32:02 CST
The US and China are a week away from the scheduled signing of the phase one trade deal announced by President Trump back in October of 2019.
Ron Hays Beef Buzzes with Erin Borror of the US Meat Export Federation
According to President Trump, it's going to be huge for U.S. agriculture- perhaps forty billion dollars in sales annually. Erin Borror, Economist for the U.S. Meat Export Federation, says we're still waiting for details about exactly how the phytosanitary standards currently in place for U.S. beef into China may or may not change, "China is the big one that's still out there that we're anxiously awaiting those details. So hopefully, as President Trump tweeted the signing on the 15th, we'll see, but yes, we are on the edge of our chairs. As Ambassador Lighthizer has said, The other barriers, besides just tariffs, are supposedly addressed in this agreement. And there is yes, a long list of those barriers, facing our U.S. Beef. I would note that China imposes these barriers on all of its suppliers and our production system we're not really set up to produce versus South America where they don't use growth hormones anyway. They have traceability requirements because of FMD." Borror adds that while China has traceability requirements and more with most of their suppliers- the question is will some of the rules put in place when the President announced the Chinese market was back open to US Beef in 2018- will those rules be relaxed? Borror adds "So, if we get big changes in the market access conditions, SPS, or sanitary-phyto requirements, then, yes, it could be mind-boggling."
"The Chinese market has been on fire again this year, and imports are massive. They're the biggest importer in the world by far, and those numbers, $7.3, billion worth of beef imported January through November. We will have bought in the U.S. somewhere over $5 billion worth of beef coming into this country, and we used to be the biggest importer in the world. So itís been quite a shift into China. The U.S currently accounts for less than 1% of China's imports.
"So itís only upward potential for us, but again we're waiting for those details and including on what the retaliatory tariff situation will look like because that's also not really been forthcoming. Currently, the U.S. Beef pays 47% tariff into China. Australia is 5%, I think, through their free trade agreement. And so our base competitor pays, basically nothing compared to what already very high priced U.S. beef because of the production requirements pays into China."
The USMEF team has been hard at work at building relationships with China, and Borror said they are starting to see some interest in adding U.S. beef to their mix, "Yes, our China team, we kind of had to do some pep rallies over the past year, year and a half, because it was a bit depressing. Not only facing the retaliatory tariffs but just the massive uncertainty. Not knowing what tomorrow might hold, these duty rates for beef have been relatively constant, so we went about 25% retaliation in the summer of 2018, and then that just increased by another 10% this past September. So they didn't end up varying that much, but still, you had the uncertainty of not knowing whether the tariff may increase or go away tomorrow, so that's not healthy when you're buying very expensive product."
Click on the LISTEN BAR below to hear the complete interview with Erin Borror as she talks With Ron Hays.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
Cattle Industry Appeals Directly to the White House Regarding Cattle Market Crash Since the Beginning of the Coronavirus Pandemic Thu, 09 Apr 2020 05:42:43 CDT
Oklahoma Sec. of Ag Blayne Arthur Requests USDA to Quickly Aid The Beef Cattle Industry Wed, 08 Apr 2020 10:41:47 CDT
Beef Industry Focuses On Sustainabiity, says NCBA's Alisa Harrison Tue, 07 Apr 2020 09:37:22 CDT
NCBA's Alisa Harrison Explains How Their Digital Marketing Strategy is Helping Consumers During the COVID-19 Crisis Mon, 06 Apr 2020 10:11:10 CDT
OSU Extension Livestock Economist Dr. Derrell Peel Offers Advice For Producers In Uncertain Times Fri, 03 Apr 2020 09:43:49 CDT
NCBA's Colin Woodall Says Federal Ruling on Beef Checkoff is a Huge Win for Cattle Industry Thu, 02 Apr 2020 09:06:22 CDT
Large Meat Supplies Keeping a Lid on Long-Term Outlook, Says Katelyn McCullock, Livestock Marketing Information Center Wed, 01 Apr 2020 10:20:23 CDT
Getting The Facts Straight About Bovine Coronavirus And COVID-19 Tue, 31 Mar 2020 10:46:10 CDT
Keeping The Food Supply Chain Moving Is Industry's Focus Says NCBA's Ethan Lane Mon, 30 Mar 2020 08:59:11 CDT
NCBA's Ethan Lane Explains The Importance of Stimulus Package For Cattle Producers Fri, 27 Mar 2020 09:42:20 CDT
NCBA's Dr. Jessica Watson Says USDA Has Paused Animal Electronic ID Program Thu, 26 Mar 2020 10:08:11 CDT
USMEF's Joel Haggard Expects China to Start Buying More U.S. Beef as They Fully Implement Phase One Agreement Wed, 25 Mar 2020 09:48:15 CDT
Consumer Demand Surge Leads to Higher Boxed Beef Prices as Food Supply Chain Adjusts to COVID-19 Tue, 24 Mar 2020 12:44:54 CDT
NCBA's Kent Bacus Sees Progress in Beef Trade With China Mon, 23 Mar 2020 10:01:17 CDT
The Great Story About Beef - Feeding More People A High Quality Diet Fri, 20 Mar 2020 09:12:51 CDT
Today's Beef Buzz - NCBA's Ethan Lane Explains How They Are Working To Keep The Food Pipeline Full Thu, 19 Mar 2020 10:07:13 CDT
Today's Beef Buzz - Positive Beef News As Canada Ratifies USMCA Trade Deal Wed, 18 Mar 2020 11:11:16 CDT
Today's Beef Buzz - Positive Beef News As Canada Ratifies USMCA Trade Deal Wed, 18 Mar 2020 09:30:49 CDT
Cattle Producers May Have to Live with Market Volatility for Several Months Tue, 17 Mar 2020 16:03:49 CDT
Shane Bedwell Says Breeding Genetics Improvements Moving At The Speed of Light Mon, 16 Mar 2020 10:38:37 CDT
CattleFax CEO Says Beef Market Has Transformed From Supply Driven To Market Driven Fri, 13 Mar 2020 10:37:13 CDT
Dr. Kathy Simmons- Beef Producers Doing Better and Better Job of Judiciously Using Antibiotics Thu, 12 Mar 2020 07:32:09 CDT
Dr. Derrell Peel says China Still Offers Potential For U.S. Beef Wed, 11 Mar 2020 10:22:59 CDT
Dr. Derrell Peel Weighs in On Black Swan Cattle Market Tue, 10 Mar 2020 11:38:55 CDT
NCBA Veterinarian Kathy Simmons Says USDA Making Progress on Getting FMD Vaccine Bank Into Place Tue, 10 Mar 2020 05:54:25 CDT
NCBA Veterinarian Kathy Simmons Says Protecting Our Ag Animals Health Is a 3-Legged Stool Mon, 09 Mar 2020 15:14:23 CDT
Allison Rivera Says NCBA Seeks Flexibility on Hours of Service for ELDS Fri, 06 Mar 2020 08:52:11 CST
Dr. Derrell Peel on The Difficulties of Pinning Down Beef Demand Cuts Thu, 05 Mar 2020 10:17:41 CST
Dr. Derrell Peel says Beef Demand Formula is Not a Simple Equation Wed, 04 Mar 2020 09:47:47 CST
Dr. Sara Place With Elanco, Explains Sustainability Tue, 03 Mar 2020 10:12:10 CST
Chase DeCoite Says BQA Program Still Relevant after 30 Years Mon, 02 Mar 2020 09:47:11 CST
Ben Weinheimer says U.S. Roundtable For Sustainable Beef Benefits Entire Cattle Industry Fri, 28 Feb 2020 08:07:52 CST
Jarold Callahan of Express Ranch on Bull Buying 101 Thu, 27 Feb 2020 11:08:32 CST
Dr. Michelle Calvo-Lorenzo Says Animal Welfare Starts with the Animal Handler Wed, 26 Feb 2020 09:12:53 CST
Dr. Shalene McNeil Says New Dietary Guidlines Include Positive Beef Impact Tue, 25 Feb 2020 09:17:10 CST