Dozens of plants already had registrations lapse in February on the website for the General Administration of Customs of China, despite US requests that they be renewed. Plants facing expiration on Monday were initially approved five years ago as part of the Phase 1 trade agreement between the US and China.
The facilities include those operated by top meat packers including JBS SA, Tyson Foods Inc., Cargill Inc. and Smithfield Foods Inc. Under the Phase 1 pact, China agreed to purchase $200 billion in US goods early in 2020 to resolve the trade dispute during President Donald Trump’s first administration.
The issue is now creating more uncertainty as Trump pursues another trade war. The president has doubled tariffs on goods from China to 20%, setting the stage for fresh geopolitical tensions in his second term. Beijing responded with duties on a range of agricultural goods, from beef and poultry to grains.
“This ultimately means we could face a complete export restriction,” said Brett Stuart, founding partner of consultancy Global Agritrends.
So many plants being up for renewal has created a “dire situation,” said Joe Schuele, spokesman for the US Meat Export Federation, whose members include beef, pork and lamb producers. China trails only Mexico in imports of American meat, according to the US Department of Agriculture.
“The USDA despite persistent efforts has not been able to get a response from China on the pending plant renewals,” Schuele said on Thursday by phone.
The trade disruption comes as China’s domestic meat producers grapple with oversupply and weakening consumption. Pork, beef and dairy prices have declined, leaving pig farmers and the cattle sector struggling to make profits.
Beijing has also launched a probe into beef imports to protect its domestic sector, a move that will likely hurt top suppliers Brazil and Australia.
The USDA didn’t immediately reply to a request for comment. In a Feb. 25 report, the agency said the Asian nation has cleared some shipments from plants with lapsed approval, and that China has also previously maintained trade with other countries as sides worked to renew registrations.
A representative for Smithfield directed questions to the US Meat Export Federation. Tyson, Cargill and JBS didn’t immediately respond to requests for comment.
