China-US using protectionism.

CHINA-NCBA continues to urge members of Congress to strip a provision that effectively bans imports of some Chinese chicken products from the 2010 agriculture appropriations. The provision (Section 727), which was included in the recently passed 2009 Omnibus Appropriations Act, has prompted China to request a World Trade Organization (WTO) consultation.

China is currently closed to U.S. beef exports, and NCBA is concerned that the chicken dispute will impede our ongoing efforts to open up China to U.S. beef. China represents one of the largest potential growth markets for U.S. beef-worth in excess of $100 billion.

With its 1.3 billion consumers, rising income levels, and rapid urbanization, growth in China’s per capita beef consumption outpaced all major beef-consuming countries during the last decade. (USITC Publication 4033, September 2008). In addition, China demonstrates a niche demand for certain beef cuts, such as offal, that are underutilized in the U.S., and can be marketed in China as premium products.

China officially banned U.S. beef and offal after the discovery of a single case of BSE in the U.S. cattle herd in December 2003. Prior to the ban, the U.S. was China’s leading foreign beef supplier by value (excluding transshipments through Hong Kong), and China was the 10th largest U.S. beef export market in 2003.

NCBA and allied industries will continue outreach to the Administration and Congress to ensure future appropriations legislation does not damage global commerce and promotes a favorable, fair international trading environment.