China and Taiwan Accepted into the WTO

WASHINGTON, DC (September 20, 2001) - The National Cattlemen’s Beef Association (NCBA) applauds the decision by the World Trade Organization (WTO) this week to formally approve WTO membership for China and Taiwan.

“The beef industry has been a strong supporter of China joining the WTO to reduce tariffs and gain market access,” said NCBA chief economist Chuck Lambert. “Through this action the U.S. beef industry will benefit from access to new wholesale and retail market channels.

“Tariffs will be reduced from 45 percent to 12 percent and market access for U.S. beef will go into effect when China joins the WTO,” Lambert said. “When fully implemented, China’s commitments could add approximately $2 billion a year to U.S. agricultural exports."

U.S. agriculture and U.S. cattle producers have become increasingly reliant on the world’s export market. China, with the word’s largest population, could rival other countries as a No. 1 importer of U.S. beef. Congress has reviewed and approved China’s trade status every year since 1980.

Permanent Normal Trade Relations (PNTR) was initiated after China and the United States reached an unprecedented trade agreement in November 1999. China agreed to open its market, and in exchange, asked Congress to waive annual review and grant it permanent favorable trading status.

For beef producers, China has agreed to lower the tariffs on most U.S. beef products from 45 percent to 12 percent over a five-year period. Also favorable for U.S. beef is the three-year phase in that allows U.S. processors to sell directly to wholesalers and retailers in China. In addition, China has agreed to eliminate agricultural export subsidies.

A congressional vote last fall granting China PNTR was supposed to have ended the annual review of China’s trade status, but PNTR does not take effect until China enters the World Trade Organization (WTO).

“In recent years Taiwan has been an important market for US beef and variety meats purchasing $50-$60 million annually," Lambert said. "The United States welcomes Taiwan as a WTO member subject to the same rules and enforcement system that has been voluntarily accepted by more than 140 other countries.”

China's and Taiwan's accession to the WTO are expected to be formally approved by trade ministers at Doha, Qatar in November. Taiwan will be able to join the WTO after its authorities formally approve the terms of its accession package.

# # #

Producer-directed and consumer-focused, the National Cattlemen's Beef Association is the trade association of America’s cattle farmers and ranchers, and the marketing organization for the largest segment of the nation’s food and fiber industry.