How Could China’s CPTPP Application Impact Beef Trade?

The international community is taking a renewed, and refreshed interest in the TPP replacement. China is looking to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, CPTPP. Joel Haggard, senior vice president at the U.S. Meat Export Federation, noted China as well as Taiwan submitted their applications with in a week of each other.

“Now the optimists argue that China’s entry into CPTPP would catalyze the reforms that China long said it would carry out including selling off or reforming its state owned enterprises, enforcing intellectual property rights and opening its financial markets.  For agriculture China would likely have to further lower tariff and non-tariff barriers to imports.  And because CPTPP members have so much to potentially gain from China’s membership, its application should be taken seriously.”

Haggard noted like any other multi-lateral trade agreement, tariffs are not the only issues that need to be addressed.

“Australia currently has major access problems for some of its Ag exports to China, including beef.  Now, one would think that those would have to be addressed.  Suppliers may also demand more streamlined access procedures for meat plants such as under the U.S. China Phase One agreement.”

Haggard added China will need to meet the needs of all CPTPP member questions, on a variety of commodities. He added other counties looking to join the CPTPP. The U.K. is in the early phases of their process. While economies such as Thailand, South Korea, the Philippines and Indonesia have also expressed an interest in joining the CPTPP.

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