The potential ag trade impact of China’s CPTPP bid
The world’s largest meat importing nation recently submitted a formal application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and it continues to draw a lot of attention.
Joel Haggard, senior vice president for the Asia-Pacific with the US Meat Export Federation says if China’s application is approved, it could have a significant impact on red meat trade. “China already has FTAs with Australia and New Zealand and duties are zero for New Zealand red meat imports into China and are already quite low for Australia,” he says. “Canada and Mexico would expect lower duties.”
The US officially withdrew from the Trans-Pacific Partnership Agreement talks in 2017 and the 11 countries moved on to form the CPTPP.
Haggard says there are other meat trade issues outside of tariffs that would also need to be addressed. “Australia currently has major access problems for some of its ag exports into China, including beef,” he says. “Now one would think those would have to be addressed. Suppliers may also demand more streamlined access procedures for meat plants, such as under the US-China Phase One agreement.”
Haggard says there is still enormous growth opportunity for red meat trade in China and the application holds significant appeal for prospective suppliers.
The United Kingdom and Taiwan have also submitted formal applications to join the CPTPP and other countries like South Korea, the Philippines, Thailand, and Indonesia have also expressed interest in joining.