May 12 The United States and China have agreed
to take action to expand bilateral trade in beef and chicken as
well as taking other steps as part of Washington's drive to
narrow the U.S. trade deficit with China.
China will allow U.S. imports of beef no later than July 16,
and the United States will issue a proposed rule to allow
Chinese cooked poultry to enter U.S. markets.
The United States also signaled that it was eager to export
more liquefied natural gas (LNG), saying China could negotiate
any type of contract, including long-term contracts, with U.S.
The following are details on the countries' trade in beef,
chicken and LNG:
China was the world's second largest consumer (7.7 million
tonnes) and importer (812,000 tonnes) of beef in 2016, behind
the United States.
China has purchased negligible amounts of U.S. beef products
since imposing a ban in 2003 over concerns about "mad cow"
Asia remains the top market for U.S. beef shipments, selling
$3.77 billion worth of beef cuts to Asia in 2016, out of U.S.
exporters' total $6.34 billion. Japan ($1.51 billion) and South
Korea ($1.06 billion) were the top buyers of U.S. beef exports.
Brazil was China's top beef supplier in 2016, shipping
$765.3 million dollars of frozen beef. Australia was the top
fresh beef supplier (valued at $57.11 million).
Tyson Foods Inc, Cargill Inc and JBS
are among the biggest exporters of U.S. meat.
(Sources: USDA, China Customs)
China was the 21st largest market for U.S poultry exports in
2016, purchasing only $33 million out of a total $3.875 billion
of U.S. poultry exports.
In 2014, the United States exported about $315 million worth
of poultry products to China, including chicken feet, or paws,
which are popular there.
China has banned U.S. poultry imports since the United
States suffered its worst-ever outbreak of avian flu in 2015.
Tyson Foods, Pilgrim's Pride and Sanderson Farms
are the top three U.S. chicken producers.
(Source: USDA, USA Poultry & Egg Export Council. )
China is the third largest LNG importer, behind Japan and
South Korea, bringing in 26.06 million tonnes in 2016.
The United States is fast becoming a major LNG exporter,
though few of its export cargoes to date have been shipped to
Shipping data on Thomson Reuters Eikon shows that the first
ever U.S. LNG tanker arrived in China in August 2016, followed
by another eight cargoes shipped between December and March.
The total amount of U.S. LNG that has so far been shipped to
China is just over 0.6 million tonnes, or 1.4 billion cubic
meters. That compares to 1.5-2 billion cubic meters coming to
China from Australia every month.
Most of China's demand needs are already met by long-term
supply agreements, although new buyers are expected to emerge in
the coming years as the country cuts back use of coal in power
generation and manufacturing.
Cheniere Energy, which operates the only current
operating U.S. LNG export terminal, said it was in talks to
start exports to China using long-term contracts.
The United States is expected to see its export capacity
rise to more than 6 billion cubic feet per day (1.7 billion
cubic meters) by the end of 2018.
(Sources: Thomson Reuters Eikon, China Customs)
(Reporting by Gavin Maguire in Singapore, David Gaffen in New
York and Tom Polansek in Chicago; editing by G Crosse)