Thousands of meat industry facilities have seen their access to the Chinese market wither. Five years ago, these companies were granted access to the Asian country’s market under the so-called Phase One trade agreement between the United States and China in 2020. Now that the agreement is expiring, it appears that these companies will not be getting an extension.
Five years ago, these meat companies received the so-called Phase 1-2020 trade agreement between the United States and China provides access to the Asian country's market. Now that the term of that agreement is expiring, it appears that these companies will not be able to get an extension.
With the expiration of the agreement, more than $3 billion in beef and pork exports are at risk. The affected facilities include locations of the largest U.S. slaughterhouses Tyson Foods, Cargill and Smithfield.
pessimism
The US Department of Agriculture (USDA) is trying with all its might to restore market access, but so far without success. The USDA indicates that China has so far refused to respond to the department's requests. Market analysts are skeptical about a good outcome.
It is not only the trade war between the two countries that is causing pessimism. The very large Chinese pigs- and beef market ensure that China has little incentive to grant the companies access again.