The Meat Institute has submitted comments to the U.S. Trade Representative (USTR) opposing the proposed modifications to the Section 301 actions, advocating instead for comprehensive trade agreements as a sustainable strategy to support meat and poultry companies and to hold China accountable.
Meat Institute President and CEO Julie Anna Potts stated, “The Section 301 tariffs and resulting retaliatory measures imposed by China have caused undue harm to U.S. agricultural exports, including meat exports. U.S. trade policy, such as the one proposed in this Section 301 action, should not inflict pain on domestic producers, companies, and workers, as this one has and will continue to do if implemented. Instead, restoring U.S. leadership in international trade through the pursuit of high-standard, comprehensive trade agreements that level the playing field for American companies and workers would be a more effective long-term strategy to counter the legitimate concerns USTR attempts to solve in this rulemaking. Market diversification initiatives, coupled with strategic competition with China, will lift all sectors of the U.S. economy without exacerbating tensions or existing economic hardship.”
US Agriculture has been Disadvantaged by Section 301Retaliatory Actions
- 2023 Data: China was the U.S. beef and pork industries’ third largest value market and the U.S. poultry industry’s second largest value destination.
- Export Losses: China’s retaliatory tariffs accounted for 95 percent of agricultural export losses by 2019, totaling $25.7 billion. Pork exports experienced significant declines, resulting in $646 million in annualized losses.
U.S. Pork Exports Continue to be Disadvantaged by China’s Retaliatory Tariffs
- Current Tariffs: U.S. pork exports to China face a 25 percent retaliatory tariff on top of the most-favored-nation (MFN) rate of 8 percent, significantly disadvantaging U.S. pork compared to other suppliers.
- Export Decline: U.S. pork exports to China, which reached a record $2.28 billion in 2020, have subsequently declined to $1.7 billion in 2021, $1.36 billion in 2022, and finally $1.24 billion in 2023, falling below previous estimates of $1.33 billion.
China Continues to Renege on Commitments Made in the U.S.-China Phase One Agreement
- Trade Barriers: Barriers to trade remain, including China’s requirement for ractopamine-free certificates, zero-tolerance policy on pathogens on raw pork and beef imports, and the ban on the use of Codex and FDA-approved beta agonists.
- Implementation Issues: Despite the Phase One Agreement simplifying the establishment registration process for U.S. meat and poultry export facilities, China failed to update the approved U.S. establishment list or process administrative revisions for more than half of 2023.
“A tit-for-tat exercise in tariff escalation does not make U.S. supply chains or key economic sectors, like agriculture, more secure or resilient,” Potts emphasized. “Instead, such a policy increases costs for consumers, importers, and exporters, constrains the ability of small- and medium-sized companies to grow and compete in the global marketplace, and is antithetical to the Administration’s pursuit of a worker-centric trade agenda.”
