Technical barriers of trade have prevented sales for more than six months since China announced it had last lifted its ban on shipments of some U.S. beef products. But during a two-day summit with Chinese President Xi Jinping this week, President Donald Trump took steps toward greater success.
Several news outlets are reporting China has offered to end a 13-year ban on American beef.
U.S. beef has been denied access to China since 2003 after a case of mad cow disease was found in Washington state, according to Bloomberg.
This is a significant opportunity for U.S. beef. Global AgriTrends estimates the market, which includes China, Hong Kong and Vietnam, could total $7 billion.
Industry groups have been urging Trump to take action on the issue since last fall when China announced it would end the ban.
U.S. beef industry groups sent a letter to Trump on March 27 urging the president to raise the restoration of U.S. beef access to China during his meeting with Jinping.
“We believe that access to the large and growing Chinese beef market is essential to the future health of the U.S. beef industry,” National Cattlemen’s Beef Association CEO Kendal Frazier said in the coalition letter.
Meatingplace reports that in a note to investors, Stephens Inc. analyst Farha Aslam cautioned “that China has made similar announcements twice before but regulatory hurdles have prevented any real trade to materialize.”
Details were not immediately available on how this new agreement will move the issue forward from the September deal.
A request for comment and confirmation of China’s offer were not returned by the U.S. Department of Commerce, according to Newsweek.
China is the second largest importer of beef.