NAEGA is continuing its work to address phytosanitary certification requirements and other non-tariff trade barriers, like issuance of bio-safety certs. for U.S. soybeans and other grains and oilseeds imported into China.  

We have completed some new work with respect to the U.S. APHIS imposed requirements for an additional declaration (AD) on China soybean phytos for shipments with over 1 percent foreign material (FM). Please find a NAEGA commissioned report from Informa Economics analyzing the factors impacting China soy imports from the U.S. here. We are awaiting a price analysis from the National Grain and Feed Association (NGFA) and are conducting analysis related to competitor national grading and testing practices.

In a meeting on Monday, June 11 the Informa report was shared with the USDA’s Chief Economist Robert Johansson and Office of the Chief Economist (OCE) staff. OCE recognized that economic impact in the first quarter of 2018 from the phyto AD exceeded $100 million USD and therefore the negative impact exceeds OCE’s threshold for analysis. It is expected that they will begin further analysis of the report this week. Overall, the U.S. government apparatus and capacity to deal with China and other trade matters is overwhelmed with current circumstances.

Moving forward, one strategy we are working which is articulated in a Concept Paper for U.S. Public-Private Partnership to provide for market access for agricultural products and commodities covered by China’s Decree 177, aims to create agreements (e.g., protocols or memoranda of understanding) that provide for market access for agricultural commodities and products addressed by Decree 177, starting with U.S. soybean exports. A copy of the concept paper can be found here.