ECONOMIC AND TRADE AGREEMENT BETWEEN

THE UNITED STATES OF AMERICA AND

THE PEOPLE’S REPUBLIC OF CHINA

JANUARY 15, 2020

FACT SHEET

On January 15, 2020, the United States and China signed an historic and enforceable agreement
on a Phase One trade deal that requires structural reforms and other changes to China’s economic
and trade regime in the areas of intellectual property, technology transfer, agriculture, financial
services, and currency and foreign exchange. The Phase One agreement also includes a
commitment by China that it will make substantial additional purchases of U.S. goods and
services in the coming years. Importantly, the agreement establishes a strong dispute resolution
system that ensures prompt and effective implementation and enforcement. The United States
has agreed to modify its Section 301 tariff actions in a significant way.

Information on specific chapters of the Phase One agreement is provided below:

• Intellectual Property: The Intellectual Property (IP) chapter addresses numerous
longstanding concerns in the areas of trade secrets, pharmaceutical-related intellectual
property, geographical indications, trademarks, and enforcement against pirated and
counterfeit goods.

• Technology Transfer: The Technology Transfer chapter sets out binding and
enforceable obligations to address several of the unfair technology transfer practices of
China that were identified in USTR’s Section 301 investigation. For the first time in any
trade agreement, China has agreed to end its long-standing practice of forcing or
pressuring foreign companies to transfer their technology to Chinese companies as a
condition for obtaining market access, administrative approvals, or receiving advantages
from the government. China also commits to provide transparency, fairness, and due
process in administrative proceedings and to have technology transfer and licensing take
place on market terms. Separately, China further commits to refrain from directing or
supporting outbound investments aimed at acquiring foreign technology pursuant to
industrial plans that create distortion.
• Agriculture: The Agriculture chapter addresses structural barriers to trade and will
support a dramatic expansion of U.S. food, agriculture and seafood product exports,
increasing American farm and fishery income, generating more rural economic activity,
and promoting job growth. A multitude of non-tariff barriers to U.S. agriculture and
seafood products are addressed, including for meat, poultry, seafood, rice, dairy, infant
formula, horticultural products, animal feed and feed additives, pet food, and products of
agriculture biotechnology.

• Financial Services: The Financial Services chapter addresses a number of longstanding

trade and investment barriers to U.S. providers of a wide range of financial services,
including banking, insurance, securities, and credit rating services, among others. These
barriers include foreign equity limitations and discriminatory regulatory requirements.
 Removal of these barriers should allow U.S. financial service providers to compete on a
more level playing field and expand their services export offerings in the Chinese market.

• Currency: The chapter on Macroeconomic Policies and Exchange Rate Matters includes
policy and transparency commitments related to currency issues. The chapter addresses
unfair currency practices by requiring high-standard commitments to refrain from
competitive devaluations and targeting of exchange rates, while promoting transparency
and providing mechanisms for accountability and enforcement. This approach will help
reinforce macroeconomic and exchange rate stability and help ensure that China cannot
use currency practices to unfairly compete against U.S. exporters.

• Expanding Trade: The Expanding Trade chapter includes commitments from China to
import various U.S. goods and services over the next two years in a total amount that
exceeds China’s annual level of imports for those goods and services in 2017 by no less
than $200 billion. China’s commitments cover a variety of U.S. manufactured goods,
food, agricultural and seafood products, energy products, and services. China’s increased
imports of U.S. goods and services are expected to continue on this same trajectory for
several years after 2021 and should contribute significantly to the rebalancing of the
U.S.-China trade relationship.

• Dispute Resolution: The Dispute Resolution chapter sets forth an arrangement to ensure
the effective implementation of the agreement and to allow the parties to resolve disputes
in a fair and expeditious manner. This arrangement creates regular bilateral consultations
at both the principal level and the working level. It also establishes strong procedures for
addressing disputes related to the agreement and allows each party to take proportionate
responsive actions that it deems appropriate. The United States will vigilantly monitor
China’s progress in eliminating its unfair trade practices and implementing these
obligations.
 ECONOMIC AND TRADE AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND
THE PEOPLE’S REPUBLIC OF CHINA
FACT SHEET

EXPANDING TRADE

The Phase One economic and trade agreement signed by the United States and
China on January 15, 2020, commits China to undertake structural changes to
open up its economy and improve its trade regime. It is expected that these
changes and other trade liberalization being pursued by China will lead to
improved trade flows benefiting China’s trade partners, especially the United
States. China is facing increased consumer demand from its growing middle
class for high-quality imports of goods and services, which the United States is
able to produce and supply at competitive prices.

Consistent with the two sides’ projections, China is committing that over the
next two years it will import no less than $200 billion of U.S. goods and
services on top of the amounts that it imported in 2017 in four broad categories:

 China’s imports of U.S. manufactured goods, such as industrial

machinery, electrical equipment, pharmaceutical products, aircraft,
vehicles, optical and medical instruments, iron and steel, solar-grade
polysilicon, hardwood lumber, and chemical products, among other
goods, will total at least $120.0 billion in 2020 and at least $131.9 billion
in 2021.

 China’s imports of U.S. agricultural products, such as soybeans, cotton,

grains, meats, ethanol, seafood, and the full range of other agricultural
products will total at least $80 billion over the next two years. China will
also strive to purchase an additional $5 billion of agricultural products
annually.
  China’s imports of energy products from the United States, such as
liquefied natural gas, crude oil, and metallurgical coal, will total at least
$30.1 billion in 2020 and at least $45.5 billion in 2021.

 China’s imports of U.S. services, such as financial services, insurance

services, cloud services, and travel services, will total at least $99.9
billion in 2020 and at least $112.2 billion in 2021.

The United States and China expect China’s increased imports of U.S. goods
and services to continue on this same trajectory for several years after 2021.

The United States’ bilateral trade deficit with China in goods and services stood
at an unsustainable level of $380 billion last year. China’s increased imports of
U.S. goods and services in 2020 and 2021 and beyond should contribute
significantly to the rebalancing of the U.S.-China trade relationship.
 ECONOMIC AND TRADE AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND
THE PEOPLE’S REPUBLIC OF CHINA
FACT SHEET

RICE

The Phase One economic and trade agreement signed by the United States and
China on January 15, 2020, will provide U.S. rice producers with expanded
access to the Chinese market.

Market Overview: Nearly 30 percent of the world’s rice is produced in China,

where it is a traditional staple food. As the top global importer and consumer,
China is projected to again import 4 million metric tons (MT) of rice in
2019/2020. China’s high internal prices, resulting from its domestic support
program, have been a key driver in the sustained imports, primarily from
neighboring countries. When joining the World Trade Organization (WTO),
China agreed to establish a 5,320,000 MT tariff-rate quota (TRQ) for rice,
equally divided into long-grain and other rice. With the completion of both the
phytosanitary protocol and this Agreement, the U.S. rice industry will now
have greater opportunities to export milled rice to China. The U.S. Department
of Agriculture (USDA) estimates that U.S. rice exports to China could reach
$300 million on an annual basis in the future.

Key Achievements:

 Rice Phytosanitary Protocol: Each time the United States provides China
with a list of rice facilities approved by USDA’s Animal and Plant Health
Inspection Service (APHIS) as compliant with the Phytosanitary Protocol
on the Import of Rice from the United States to China, within 20 business
days of receipt of the list, China will register the facilities, publish the list
of facilities, and allow the importation of U.S. rice from each of the
APHIS-approved rice facilities. China continues to have the right to
conduct on-site phytosanitary audits of registered facilities. China has
already registered 32 U.S. rice facilities as approved to export to China.
  Tariff Rate Quotas for Rice: Related to the WTO dispute brought and
won by the United States, China has agreed to comply with its WTO
obligations for the administration of TRQs for rice by December 31, 2019.
In addition, in this Agreement, China has agreed to ensure that it
administers its TRQ for rice with specific obligations to:

 Allocate the full TRQ by January of each year;

 Not discriminate between state trading enterprises and non-state
trading enterprises;
 Reallocate unused or returned TRQ amounts;
 Ensure that allocations are made in commercially viable shipping
amounts;
 Enhance transparency of the eligibility criteria and allocation
principles;
 Ensure there is a sufficient number of state trading enterprises and
non-state trading enterprises eligible to receive allocations and that
full utilization of the TRQs is not inhibited;
 Provide relevant allocation and reallocation information upon
request of the United States; and
 Make public on a public website existing laws, regulations, and
announcements on the administration of the rice TRQ.

 Domestic Support for Rice: Regarding its domestic support, China

confirms that it will respect its WTO obligations to publish in an official
journal its domestic support laws, regulations and related measures.
Separately, through dispute settlement proceedings at the WTO, China
has already agreed to come into compliance with a panel report on
domestic support for wheat and rice by March 31, 2020. The United
States maintains its rights in those dispute proceedings should China not
come into compliance.

 China has communicated to the United States that U.S. medium grain
rice can be imported under China’s “Rice, short and medium grain”
category of its TRQ system.

Additional Information for Exporters:

 New to the China market? If your company is interested in exporting rice

to China, please contact USDA’s Foreign Agricultural Service at
[email protected] for more information.

 If you are interested in opening new markets for U.S. commodities to

China or would like more information about exporting plants or plant
products, please visit the USDA Animal and Plant Health Inspection
Service’s website on plant health export information:
https://www.aphis.usda.gov/aphis/ourfocus/planthealth/SA_Export.
 ECONOMIC AND TRADE AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND
THE PEOPLE’S REPUBLIC OF CHINA
FACT SHEET

PET FOOD

The Phase One economic and trade agreement signed by the United States and
China on January 15, 2020, will provide U.S. manufacturers expanded access to
China’s rapidly growing market for dog and cat food.

Market Overview: Demand for imported pet food products from abroad is
growing at a rapid rate, and American brands are in high demand, including in
China. In recent years, U.S. pet food exports were limited due to animal health
restrictions on U.S. products containing poultry or bovine ingredients. In
addition, it is onerous to register new facilities with Chinese authorities. The
Phase One agreement addresses all of these issues and gives U.S. companies
streamlined access to China while providing Chinese consumers with a wider
variety of high quality American pet food products to choose from in the
future.

Key Achievements:

China has agreed to:

 Lift its ban on U.S. pet food containing ruminant ingredients and
eliminate Polymerase Chain Reaction (PCR) testing of U.S. pet food
products containing ruminant ingredients. PCR testing of U.S. pet food
products not containing ruminant ingredients is to be on a risk-based
selection of shipments;

 Allow importation of U.S. pet foods containing poultry products;

 Update the General Administration of Customs of the People’s Republic

of China (GACC) website to allow import from 24 U.S. pet food and non-
ruminant animal feed facilities with current pending registrations;
  Not require completion or submission of any pet food facility
questionnaire for registration purposes, other than for a pet food facility
China may be auditing;

 Allow the use of imported animal origin ingredients in pet food as long
as the ingredients are legally imported into the United States, meet U.S.
domestic requirements for inclusion in pet food, and are traceable to the
country of origin.

New Import Protocol: The United States and China will engage in technical
discussions to sign within two months an updated protocol for U.S. pet food
imports into China. Before the new protocol is finalized, pet food
manufacturers will still not be able to use ruminant ingredients or imported
ingredients. However, poultry ingredients will be allowed to be imported.
Pending finalization of the new pet food protocol, imports will continue under
the existing non-ruminant animal feed protocol.

Addition of New Facilities in the Future: For future new pet food and non-
ruminant derived animal feed facilities, or facility updates, the United States
will provide updates to GACC, and China will publish those updates on GACC’s
website within 20 business days of receipt.

Audits/Inspections: China has agreed to not require any routine audits or

inspections of U.S. pet food and non-ruminant derived animal feed facilities.
However, in accordance with international standards, China may perform
risk-based audits in coordination with the relevant U.S. competent
authority. China may also conduct inspections of a risk-based selection of
shipments of U.S. pet food and non-ruminant derived animal feed at the port
of entry. China will notify the United States if it notices a significant,
sustained, or recurring pattern of non-conformity by a particular facility and if
it intends to restrict imports from that facility. The United States and China
will work together to resolve any such issues should they be detected.

Additional Information for Exporters:

 New to the China market? For more information about certification,

documentation, and registration requirements, and for assistance with
detained shipments, contact USDA’s Foreign Agricultural Service at
[email protected].
 All facilities must be inspected by USDA’s Animal and Plant Health
Inspection Service (APHIS) Veterinary Services to be eligible to export to
China. Exporters must also be willing to allow GACC to publish company
information on its website so Chinese importers will know the company
is authorized to export pet food products containing animal origin
ingredients to China.

 APHIS will maintain the updated list of export facilities and provide
updates to GACC on a regular basis.

 The GACC website can be found at the following website link (Please note
many web browsers have automatic translate functions that can help
navigate Chinese websites):
http://www.customs.gov.cn/customs/jyjy/dzwjyjy/qymd/slaq/2157783/i
ndex.html.

 In the next few months, APHIS will provide exporters with an updated
protocol for pet food exports to China. APHIS will also provide export
certificates for U.S. products going to China. Please see the APHIS
website for more information at:
https://www.aphis.usda.gov/aphis/ourfocus/animalhealth/export/iregs
-for-animal-product-exports/sa_international_regulations
/sa_by_country/sa_c/ct_product_china.

 Exporters can also sign up for USDA Stakeholder Alerts to receive

notification when new protocols are posted. To sign up, please visit:
https://public.govdelivery.com/accounts/USDAAPHIS/subscriber/new.
Scroll to Veterinary Services and select “IREGS Animal Product Updates
(Exports).”
 ECONOMIC AND TRADE AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND
THE PEOPLE’S REPUBLIC OF CHINA
FACT SHEET

MEAT, POULTRY, AND LIVE BREEDING CATTLE

The Phase One economic and trade agreement signed by the United States and
China on January 15, 2020, will provide U.S. exporters of beef, pork, and
poultry, as well as live breeding cattle with expanded access to China’s rapidly
growing market.

Market Overview: As incomes rise in China, demand for protein in diets

increases as well. Chinese demand for imported beef, pork, and poultry is
growing at a rapid rate, made more acute due to domestic pork supply
constraints in China as a result of the ongoing outbreak of African swine fever.
When China partially re-opened its market to U.S. beef and beef products in
2017, following a 13-year ban, many unscientific restrictions remained,
including on age, product scope, use of veterinary drugs, and traceability. In
addition, it was very difficult to register new facilities with Chinese authorities
in order to export these commodities to China. Similarly, China banned all U.S.
poultry in 2015 and has maintained longstanding market access restrictions on
specific U.S. beef and pork products. The Phase One agreement addresses these
issues and should give U.S. companies streamlined access to China’s market
while providing Chinese consumers with a wider variety of American beef,
pork, and poultry products to choose from in the future. While Chinese
livestock producers already import large volumes of livestock genetics from
the United States, the Phase One agreement will provide an opportunity in the
future for U.S. exports of high quality live breeding cattle.

On November 14, 2019, China reopened its market to U.S. poultry meat,
partially eliminating the ban it had imposed in late 2014. On November 22,
2019, the U.S. Department of Agriculture (USDA) updated the online export
library listing requirements for U.S. exporters to ship U.S. poultry meat to
China. U.S. establishments can only export poultry to China that is slaughtered
and further processed after the establishment has been added to the General
Administration of Customs of the People’s Republic of China (GACC) website.
On November 22, 2019, GACC completed updating an initial online list of 349
U.S. establishments eligible to export to China. Upon GACC publishing U.S.
establishments, Chinese importers are now able to obtain import licenses to
start placing orders.

Key Achievements:

China has agreed to implement the following actions:

BEEF

 Remove age restrictions for U.S. beef and beef products upon completing
a risk assessment;

 Expand the allowable product scope for U.S. beef and processed beef
products to more closely align with those products that the United States
allows for domestic consumption and export;

 Recognize the U.S. beef and beef products’ traceability system that the
United States already has in place, which exceeds World Organization for
Animal Health (OIE) guidelines for bovine spongiform encephalopathy;
and

 Adopt internationally-accepted maximum residue levels for three

widely-used veterinary drugs (zeranol, trenbolone acetate, and
melangesterol acetate).

PORK

 Expand the allowable product scope for U.S. pork and pork products,
including bungs and intestines and processed products.

POULTRY

 Finalize a protocol for the regionalization of poultry diseases, thereby

ensuring that future trade disruptions will be minimized and solely
based on internationally-accepted practices;

 Fully lift the ban on other poultry commodities, including live birds; and

 Abide by OIE standards for international trade of poultry products.

ALL MEAT, PORK, AND POULTRY

 Address the backlog of facilities awaiting approval and accelerate the

process for future applicants by publishing within 20 business days of
receipt the updated list of USDA-approved facilities;

 Permit, consistent with USDA directives, the use of replacement

certificates;

 Begin utilizing USDA’s Public Health Information System to facilitate the

use of electronic transmission of export health certificates, greatly
reducing the workload for exporters and regulators; and

 Conduct as soon as possible a risk assessment for ractopamine in cattle

and swine, consistent with Codex Alimentarius Commission and
FAO/WHO Joint Expert Committee on Food Additives (JECFA) risk
assessment guidance based on a previously conducted JECFA risk
assessment.

LIVE BREEDING CATTLE

 Negotiate a protocol governing the export of U.S. live breeding cattle to

China.

Protocols: The following protocols are, or will be, in effect:

 Poultry: A Protocol on Cooperation on Notification and Control Procedures

for Certain Significant Poultry Diseases will be signed and implemented.

 Live Breeding Cattle: The two sides will hold technical discussions for
the preparation of a protocol and associated export certificate for the
export of live breeding cattle.

Audits/Inspections: China has agreed to not require any routine audits or

inspections of U.S. meat and poultry facilities as part of any facility registration
process. However, in accordance with international standards, China may
perform risk-based audits in coordination with USDA’s Food Safety and
Inspection Service (FSIS). China may also conduct inspections of a risk-based
selection of shipments of U.S. meat and poultry at the port of entry. China may
refuse importation of a shipment of imported U.S. meat or poultry products
after conducting a scientific inspection and determining it is in violation of
applicable food safety import requirements. China will notify the United States
if it notices a significant, sustained, or recurring pattern of non-conformity by
a particular facility and if it intends to restrict imports from that facility. The
United States and China will work together to resolve any such issues should
they be detected.

Additional Information for Exporters:

 Current information about live animal exports to China is available on

the USDA’s Animal and Plant Health Inspection Service (APHIS)
Veterinary Services website:
https://www.aphis.usda.gov/aphis/ourfocus/animalhealth/export/inter
national-standard-setting-activities-oie/regionalization
/sa_by_country/sa_c/ct_animal_china.

You can also sign up for USDA Stakeholder Alerts to receive notification
when new protocols are posted. To sign up, please visit:
https://public.govdelivery.com/accounts/USDAAPHIS/subscriber/new.
Scroll to Veterinary Services and select “IREGS Live Animals Updates
(Exports).”

 Current export requirements for beef, pork, and poultry products to

China are available on the USDA’s Food Safety and Inspection Service’s
export library at:
https://www.fsis.usda.gov/wps/portal/fsis/topics/international-
affairs/exporting-products/export-library-requirements-by-
country/peoples-republic-of-china.

 USDA’s Foreign Agricultural Service (FAS) will also be sending out Global
Agricultural Information Network (GAIN) reports that will include
China-specific import registration and permit requirements. Please
click on the following link for access to these reports:
https://gain.fas.usda.gov/#/search.

 New to the China market? For more information about certification,

documentation, and registration requirements and for assistance with
detained shipments, contact USDA’s Foreign Agricultural Service at
[email protected] for more information.
 ECONOMIC AND TRADE AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND
THE PEOPLE’S REPUBLIC OF CHINA
FACT SHEET

HORTICULTURAL PRODUCTS

The Phase One economic and trade agreement signed by the United States and
China on January 15, 2020, will provide U.S. producers of horticultural products
with new or expanded access to the Chinese market.

Market Overview: China’s expanding economy, rising disposable incomes,

and urbanization are increasing interest and demand for imported
horticultural products. In fact, China’s customs data indicates that domestic
demand for imported horticultural products increased from $12.5 billion in
2013 to $22.5 billion in 2018. China’s imports of horticultural products from
the United States totaled $2.3 billion in 2018, third after the EU-28 and
Thailand. The U.S. agriculture industry will benefit from new opportunities to
export multiple products, such as fresh potatoes, California nectarines,
blueberries, and California Hass avocadoes, to China.

Key Achievements:

China has agreed to:

 Sign and implement a phytosanitary protocol to allow the importation of

U.S. fresh potatoes for processing into China;

 Sign and implement a phytosanitary protocol to allow the importation of

California nectarines into China;

 Sign and implement a phytosanitary protocol to allow the importation of

U.S. blueberries into China;

 Sign and implement a phytosanitary protocol to allow the importation of

California Hass avocadoes into China.
The United States has agreed to:

 Complete its plant health regulatory process for Chinese fresh jujube;

 Complete its plant health regulatory process for Chinese fresh fragrant
pear;

 Complete its regulatory process for Chinese fresh citrus fruit; and

 Begin plant health consultations for Chinese bonsai in growing media.

In addition, both Parties have affirmed that phytosanitary certificates are not
required for the import of frozen fruits and vegetables.

Additional Information for Exporters:

 New to the China market? If your company is interested in exporting

horticultural products to China, please contact USDA’s Foreign
Agricultural Service at [email protected] for more
information.

 If you are interested in opening new markets for U.S. commodities to

China or would like more information about exporting plants or plant
products, please visit the USDA Animal and Plant Health Inspection
Service’s website on plant health export information:
https://www.aphis.usda.gov/aphis/ourfocus/planthealth/SA_Export.
 ECONOMIC AND TRADE AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND
THE PEOPLE’S REPUBLIC OF CHINA
FACT SHEET

DAIRY AND INFANT FORMULA

The Phase One economic and trade agreement signed by the United States and
China on January 15, 2020, will provide U.S. farmers and dairy companies
expanded access to China’s rapidly growing market for imported dairy and
infant formula products.

Market Overview: As incomes rise in China, consumption of animal proteins

such as dairy products is becoming more popular among Chinese consumers.
In particular, demand for imported dairy and infant formula products from
abroad is growing at a rapid rate. However, in recent years, U.S. dairy and
infant formula exports have been limited by restrictive Chinese regulatory
requirements. The Phase One agreement addresses these limitations and
ensures China recognizes the U.S. food safety system of oversight for dairy
products, giving U.S. dairy and infant formula companies increased access to
China while also providing Chinese consumers with a wider variety of high
quality and safe U.S. products. The Phase One agreement will also facilitate
U.S. exports of products like extended shelf life milk, ultrafiltered milk and
dairy permeate powder for human consumption.

Key Achievements:

China has agreed to:

 Recognize the U.S. system of oversight for dairy products as providing

the same level of protection as China’s, thereby eliminating the need for
China-specific inspections of U.S. dairy facilities;

 Update its dairy facility registrations within 20 business days of

receiving a list from the U.S. Food and Drug Administration;
  Allow ovine and caprine origin dairy product imports from the United
States, which were previously not eligible for export to China;

 Clarify the market access requirements and regulations related to fluid

milks, including fortified, pasteurized, extended shelf life and
ultrafiltered milks, and eliminate questionnaire requirements for fluid
milk producers to obtain their facility registration;

 Complete the approval process for imports of dairy permeate powder for
human consumption;

 Adhere to specified timelines when administering the product and

facility registration of U.S. infant formulas;

 Ensure the confidentiality of any trade secrets disclosed during the

infant formula product registration process; and

 Not require on-site inspections or audits as a prerequisite to registering

either a U.S. dairy or infant formula facility, although China will still
inspect manufacturers for purposes of registering an infant formula
product.

Audits/Inspections: China has agreed to not require any routine audits or

inspections of U.S. dairy and infant formula products. However, in accordance
with international standards, China may perform risk-based audits in
coordination with the relevant U.S. competent authority. China may also
conduct inspections of a risk-based selection of shipments of U.S. dairy and
infant formula products at the port of entry. China will notify the United States
if it notices a significant, sustained, or recurring pattern of non-conformity by
a particular facility and if it intends to restrict imports from that facility. The
United States and China will work together to resolve any such issues should
they be detected.

Additional Information for Exporters:

 New to the China market? For more information about certification,

documentation and registration requirements, and for assistance with
detained shipments, contact USDA’s Foreign Agricultural Service at
[email protected] for more information.

 To be eligible to ship dairy products to China, U.S. producers must be

registered with China’s General Administration of Customs of the
 People’s Republic of China (GACC). U.S. producers can register, renew,
or update their existing registration by contacting the U.S. Food and
Drug Administration: https://www.fda.gov/food/food-export-
lists/dairy-exports-european-union-china-and-chile.

 U.S. dairy producers must also ensure consignments destined for China
are accompanied by a dairy sanitary certificate from the Agricultural
Marketing Service with the U.S. Department of Agriculture:
https://www.ams.usda.gov/services/imports-exports/dairy-
exports/dairy-sanitary-certificates.
 ECONOMIC AND TRADE AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND
THE PEOPLE’S REPUBLIC OF CHINA
FACT SHEET

SEAFOOD

The Phase One economic and trade agreement signed by the United States and
China on January 15, 2020, will provide U.S. fishermen and seafood companies
expanded access to China’s rapidly growing market for imported seafood
products.

Market Overview: As incomes rise in China, consumption of animal proteins

such as seafood is becoming more popular among Chinese consumers. In
addition, China is a major partner for U.S. seafood producers who ship raw
seafood to China for further processing. However, in recent years, U.S. seafood
exports to China have been hampered by restrictive Chinese regulatory
initiatives. The Phase One agreement addresses these limitations and gives
U.S. seafood companies increased access to the China market.

Key Achievements:

China has agreed to:

 Approve 26 species of seafood for importation into China;

 Allow imports from U.S. seafood and fishmeal facilities that are in good
standing with the U.S. Food and Drug Administration (FDA) and the
National Oceanic and Atmospheric Administration (NOAA);

 Ensure it updates seafood and fishmeal facility registrations within 20

business days of receipt from the FDA and NOAA; and

 Ensure the continued use of existing bilaterally-agreed certificates

issued by NOAA.
Audits/Inspections: China has agreed to not require any routine audits or
inspections of U.S. aquatic product facilities. However, in accordance with
international standards, China may perform risk-based audits in coordination
with the relevant U.S. competent authority. China may also conduct
inspections of a risk-based selection of shipments of U.S. aquatic products at
the port of entry. China will notify the United States if it notices a significant,
sustained, or recurring pattern of non-conformity by a particular facility and if
it intends to restrict imports from that facility. The United States and China
will work together to resolve any such issues should they be detected.

Additional Information for Exporters:

 To be eligible to ship seafood products to China, U.S. producers must be

registered with the General Administration of Customs of the People’s
Republic of China (GACC). U.S. producers can register with GACC or
renew or update their existing registration by contacting the U.S. Food
and Drug Administration: https://www.fda.gov/food/food-export-
lists/seafood-exports-european-union-and-china.

 U.S. seafood producers must also ensure consignments destined for

China are accompanied by a certificate from NOAA:
https://www.fisheries.noaa.gov/export-requirements-country-and-
jurisdiction-f#china.

 New to the China market? For more information about certification,

documentation, and registration requirements, and for assistance with
detained shipments, contact USDA’s Foreign Agricultural Service at
[email protected] for more information. You can also contact
NOAA at [email protected].
 ECONOMIC AND TRADE AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND
THE PEOPLE’S REPUBLIC OF CHINA
FACT SHEET

ANIMAL FEED

The Phase One economic and trade agreement signed by the United States and
China on January 15, 2020, will provide U.S. manufacturers of feed additives,
premixes, compound feed, and distillers’ dried grains with solubles (DDGS)
streamlined processes for registration and licensing to facilitate U.S. exports to
China. The Phase One agreement will also result in new import protocols for
U.S. barley, alfalfa hay pellets and cubes, almond meal pellets and cubes, and
timothy hay, allowing imports of such products into China.

Market Overview: As China’s livestock sector has increased, its need for
quality feed and feed ingredients has likewise increased. To date, however, U.S.
manufacturers have had difficulty registering new feed products and facilities
with Chinese authorities. In addition, exporters of DDGS face burdensome
product licensing procedures, which cause export delays. The Phase One
agreement addresses these issues and provides U.S. companies streamlined
access to the Chinese market. In addition, China has agreed to negotiate
protocols to allow imports of additional feed products.

Key Achievements:

China has agreed to:

 Immediately update its list of traditionally-traded feed additive products

with 23 specific products listed in a side letter associated with the
Agreement;

 Streamline the registration process for feed additives, premixes, and

compound feed by waiving manufacturer site visits and export protocols
that are normally part of the registration process for feed products;
  List registered facilities on the General Administration of Customs of the
People’s Republic of China (GACC) website within 20 business days of
receiving the facility information from the United States;

 Issue renewed licenses within 20 business days of receiving applications

for DDGS manufacturers whose licenses expired on or after January 1,
2017, or are scheduled to expire after that date;

 Complete product reviews within nine months of receiving an

application for the approval of a new feed additive, premix, or compound
feed product;

 Issue licenses for product renewals within 20 business days of receiving

an application for renewal of a feed additive, premix, or compound feed
product;

 Sign and implement a phytosanitary protocol to allow the importation of

U.S. barley into China; and

 Sign and implement a phytosanitary protocol to allow importation of

U.S. alfalfa hay pellets and cubes, U.S. almond meal pellets and cubes,
and U.S. timothy hay into China after conducting an on-site visit of U.S.
production.

Both Parties have agreed to continue technical consultations concerning

facilitation of trade in grain and oilseed products for both feed and further
processing.

Addition of New Facilities in the Future: The United States will provide
updated lists of facilities producing feed additives, premixes, compound feed,
and DDGS to GACC, and China will publish the updated lists on GACC’s website
within 20 business days of receipt.

Audits/Inspections: China has agreed to not require any routine audits or

inspections of U.S. feed additive, premix, compound feed, or DDGS facilities.
However, in accordance with international standards, China may perform
risk-based audits in coordination with the relevant U.S. competent
authority. China may also conduct inspections of a risk-based selection of
shipments of U.S. animal feed products at the port of entry. China will notify
the United States if it notices a significant, sustained, or recurring pattern of
non-conformity by a particular facility and if it intends to restrict imports
from that facility. The United States and China will work together to resolve
any such issues should they be detected.

Additional Information for Exporters:

 New to the China market? If your company is interested in exporting

animal feed, feed additives, premixes, compound feed, or DDGS products
to China, please contact USDA’s Foreign Agricultural Service at
[email protected] for more information.

 Producers and exporters of barley, alfalfa hay pellets and cubes, almond
meal pellets and cubes, and timothy hay should visit the U.S. Animal and
Plant Health Inspection Service website for more information:
https://www.aphis.usda.gov/aphis/ourfocus/importexport.

 All facilities interested in exporting feed additives, premixes, compound

feed, or DDGS products to China must be registered as an animal food
facility with the U.S. Food and Drug Administration (FDA) in accordance
with Section 415 of the Federal Food, Drug, and Cosmetic Act.
Information on how to complete the registration process can be found
on FDA’s website. Manufacturers will also need to provide to FDA
permission to share facility data with China and be willing to allow GACC
to publish company information on their website so Chinese importers
will know the company is authorized to export animal feed, feed
additives, premixes, compound feed, or DDGS products to China.

 Facilities producing other types of animal feed containing animal-origin

ingredients should see the APHIS Veterinary Services website for more
information:
https://www.aphis.usda.gov/aphis/ourfocus/animalhealth/export/iregs
-for-animal-product-exports/sa_international_regulations
/sa_by_country/sa_c/ct_product_china.

 GACC is responsible for posting the lists of eligible products and facilities
from around the world that have permission to export these products to
China. Although the lists are in Chinese, many web browsers have an
automatic translate function that will make it easier to find the list of
interest. These lists can be found at the following website:
http://www.customs.gov.cn/customs/jyjy/dzwjyjy/qymd/slaq/2157783/i
ndex.html.
 ECONOMIC AND TRADE AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND
THE PEOPLE’S REPUBLIC OF CHINA
FACT SHEET

AGRICULTURAL BIOTECHNOLOGY

With China’s commitment to implement a transparent, predictable, efficient,

science- and risk-based system for the review of products of agricultural
biotechnology, the Phase One economic and trade agreement signed by the
United States and China on January 15, 2020, will result in improvements to
China’s regulatory authorization process for agricultural biotechnology
products. These changes will result in China completing review of an
application for products for animal feed or further processing in an average of
no more than 24 months. China will also improve the transparency and
timeliness of its process and has agreed to work with importers and the U.S.
government in situations of low-level presence (LLP) of genetically
engineered materials in shipments.

Market Overview: As incomes rise in China, food, feed, and ingredients

derived from biotechnology are increasingly required. Demand for imported
products derived from biotechnology is growing at a rapid rate. In recent
years, China has become the largest single-nation importer of agricultural
products derived from biotechnology. However, product approvals languish in
China’s regulatory system for five to seven years, stymying U.S. farmers and
companies’ access to tools and technologies needed to respond to 21st century
food and agricultural challenges.

Key Achievements:

China has agreed to:

 Operate a transparent, predictable, efficient, and science- and risk-

based regulatory system for products derived from agricultural
biotechnology;
 Reduce the application review time for products for animal feed or for
further processing to no more than 24 months, on average;
 Base safety evaluation procedures on relevant international standards
and recommendations of the Codex Alimentarius Commission and the
International Plant Protection Convention;

 Pre-screen each application for regulatory review for completeness and

inform the applicant of any deficiencies within five business days;

 Accept complaints from applicants concerning the approval procedure

and take corrective action upon receipt of a justified complaint;

 When additional, necessary information is needed by the National

Biosafety Committee (NBC) to finalize an evaluation, within 20 business
days of such a determination, request all information in writing and
provide a written explanation of how the requested information would
be relevant to the safety assessment of the product’s intended use;

 When additional information has been submitted to the NBC, ensure that
the NBC meets as soon as possible and as often as necessary to finalize
the NBC’s review of the application;

 Extend product authorizations to five years;

 Establish and make public a simplified, predictable, efficient, and

science- and risk-based safety assessment procedure for the
authorization of food ingredients derived from genetically modified
microorganisms;

 Accept product applications on an ongoing, year-round basis and begin

review upon receipt of the formal application;

 Not request information unnecessary for assessing the safety of the

product for its intended use; and

 For products authorized, issue a biosafety certificate within 20 business

days of the conclusion of a NBC meeting.

 In the event of a LLP occurrence, China will:

 o Without undue delay, inform the importer of the LLP occurrence
and any pertinent information that will be required to assist China
to decide on the management of the LLP occurrence;

o Conduct evaluation on inadvertent or technically unavoidable LLP

occurrences on a case-by-case basis to minimize trade
disruptions;

o Provide to the United States a summary of any risk or safety

assessment that China conducted in association with the LLP
occurrence;

o Ensure that the LLP occurrence is managed without unnecessary

delay; and

o Consider any relevant risk or safety assessment provided and

authorization granted by the United States or any foreign country
when deciding how to manage the LLP occurrence.

 Work with the United States to strengthen communication on

biotechnology regulation, to increase mutual understanding, and to
monitor implementation of this agreement.

Additional Information for Exporters:

 For more information, contact USDA’s Foreign Agricultural Service at

[email protected].
 ECONOMIC AND TRADE AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND
THE PEOPLE’S REPUBLIC OF CHINA
FACT SHEET

AGRICULTURE AND SEAFOOD RELATED PROVISIONS

The Phase One economic and trade agreement signed by the United States and
China on January 15, 2020, further opens China’s food and agriculture market
to American products. The Phase One agreement addresses structural barriers
to trade and will support a dramatic expansion of U.S. food, agriculture, and
seafood product exports, increase American farm and fishery income, generate
more rural economic activity, and promote job growth.

Key outcomes of the Phase One agreement are:

 Purchases: China will purchase and import on average at least $40

billion of U.S. food, agricultural, and seafood products annually for a
total of at least $80 billion over the next two years. Products will cover
the full range of U.S. food, agricultural, and seafood products. On top of
that, China will strive to import an additional $5 billion per year over the
next two years.

 Agricultural Biotechnology: China has agreed to implement a

transparent, predictable, efficient, science- and risk-based regulatory
process for the evaluation and authorization of products of agricultural
biotechnology. China’s time frame for review and authorization for
products for feed or further processing will be an average of 24 months.
China has also agreed to certain administrative improvements in the
application process, to certain steps to address situations of low-level
presence, and to develop safety assessment procedures for approval of
food ingredients that are derived from genetically modified
microorganisms.

 Domestic Support: China has agreed to respect its current World Trade
Organization (WTO) obligations on the transparency of its domestic
support measures. Separate from this Agreement, as part of a WTO
1
 dispute brought and won by the United States, China previously agreed
to comply with its WTO obligations on its domestic support for rice and
wheat by March 31, 2020. The United States maintains the right to take
actions related to that dispute.

 Tariff Rate Quota Administration: China has agreed to comply with its
WTO obligations and to make specific improvements to its
administration of wheat, corn, and rice tariff-rate quotas (TRQs),
including the allocation methodology, treatment of non-state trading
quota applicants, and increased transparency. Separate from this
Agreement, as part of a WTO dispute brought and won by the United
States, China agreed to comply with its WTO obligations for the
administration of TRQs for wheat, corn, and rice by December 31, 2019.

 Sanitary and Phytosanitary Measures: The Parties agreed to not

implement food safety regulations or require actions of the other Party’s
regulatory authorities that are not science- and risk-based and shall
only apply such regulations and require such actions to the extent
necessary to protect human life or health. In addition, recognizing the
importance of ensuring that sanitary and phytosanitary (SPS) measures
are science-based, non-discriminatory, and account for regional
differences, the Parties have agreed that China will improve SPS
measures affecting a wide variety of products, which will facilitate
exports of U.S. food and agricultural products to China.

 Beef: China will expand the scope of beef products allowed to be

imported, eliminate age restrictions on cattle slaughtered for export to
China, eliminate unnecessary cattle traceability requirements, and
provide for the establishment of maximum residue levels for three
hormones legally used in the United States.

 Pork: China has agreed to broaden the list of pork products that are
eligible for importation to include processed products such as ham and
certain types of offal. China also agreed to conduct a risk assessment for
the veterinary drug ractopamine, which may be used in U.S. beef and
pork production.

 Poultry: On November 14, 2019, China reopened its market to U.S.

poultry meat, partially eliminating the ban it had imposed in late 2014.
The U.S. Department of Agriculture (USDA) and China’s customs
administration have completed necessary technical details, and Chinese
importers can import U.S. poultry meat slaughtered and processed after
being listed on the website of the General Administration of Customs of
2
 the People’s Republic of China (GACC).

 Processed Meat: China will immediately recognize USDA oversight of

U.S. meat, poultry meat, and processed meat and poultry meat facilities,
thereby eliminating any unique registration requirements and allowing
imports of products accompanied by USDA certificates.

 Public Health Information System (PHIS): China will implement by

February 2020 USDA’s PHIS, an electronic system to notify the USDA
export health certificates to foreign governments in advance of
shipment arrival. PHIS greatly reduces the workload for exporters and
regulators. China will also accept USDA-issued replacement certificates.

 Live Cattle for Breeding: Through this Phase One agreement, China will
immediately engage in technical discussions for the import of U.S. live
cattle for breeding.

 Dairy and Infant Formula: China has committed to streamline the

timelines and procedures for registering U.S. dairy and infant formula
facilities and products and to provide regulatory certainty and market
stability for products like fluid milk and dairy permeate powder.

 Rice: China has committed to authorize the importation of U.S. rice from
any USDA-approved rice facility within 20 business days of China’s
receipt of notification from the United States that USDA has approved
the facility as compliant with the phytosanitary protocol agreed to by the
United States and China.

 Seafood: China has agreed to approve the importation of 26 aquatic

species requested for export by the United States. China has also
committed to streamline the timelines and procedures for registering
U.S. seafood facilities and products including fishmeal and oil.

 Fruits, Vegetables, and Plant-based Feed Products: China has agreed to

finalize phytosanitary protocols for U.S. avocadoes, blueberries,
potatoes, California nectarines, barley, alfalfa hay pellets and cubes,
almond meal pellets and cubes, and timothy hay.

 Feed Products, including Distillers’ Dried Grains with Solubles (DDGS):

China has agreed to immediately update its list of traditionally-traded
feed additive products with 23 U.S. products and to streamline the
registration process for feed additives, premixes, and compound feed.
With regard to DDGS, China has also agreed to speed up license renewals
3
 for DDGS manufacturers.

 Pet Food: China has agreed to immediately resume imports of pet food
containing poultry ingredients and to lift the ban on ruminant
ingredients. China has also committed to streamline the timelines and
procedures for registering U.S. facilities.

 Food Safety: China agrees to not implement food safety regulations or

require actions of the other Party’s regulatory authorities that are not
science- and risk-based and shall only apply such regulations and
require such actions to the extent necessary to protect human life or
health.

 Geographical Indications (GI): China has agreed to not undermine

market access for U.S. exports to China using trademarks and generic
terms through any GI measures taken in connection with an
international agreement, to use certain relevant factors when making
determinations for genericness, and to not provide GI protection to
individual components of multi-component terms if the individual
component is generic.

4
 ECONOMIC AND TRADE AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND
THE PEOPLE’S REPUBLIC OF CHINA
FACT SHEET

AGRICULTURE AND SEAFOOD RELATED PROVISIONS

Overview

Since 2009, China has been one of the top four largest export markets in the
world for U.S. food, agricultural, and seafood products. China’s rapidly-
developing economy has become one of the fastest growing markets in the
world. While China represents a major market for U.S. agricultural exports,
China’s overly restrictive and burdensome import requirements have
hampered the ability of U.S. farmers to compete on a level playing field.

The Phase One economic and trade agreement signed by the United States and
China on January 15, 2020, will further open China’s food and agriculture
market to American products. The Phase One agreement addresses structural
barriers to trade and will support a dramatic expansion of U.S. food,
agriculture, and seafood product exports, increase American farm and fishery
income, generate more rural economic activity, and promote job growth.

Key outcomes of the Phase One agreement are:

 Purchases: China will purchase and import on average at least $40

billion of U.S. food, agricultural, and seafood products annually for a
total of at least $80 billion over the next two years. Products will cover
the full range of U.S. food, agricultural, and seafood products. On top of
that, China will strive to import an additional $5 billion per year over the
next two years.

 Agricultural Biotechnology: China has agreed to implement a

transparent, predictable, efficient, science- and risk-based regulatory
process for the evaluation and authorization of products of agricultural
biotechnology. China’s time frame for review and authorization for

1
 products for feed or further processing will be an average of 24 months.
China has also agreed to certain administrative improvements in the
application process, and to certain steps to address situations of low-
level presence.

 Domestic Support: China has agreed to abide by its current World Trade
Organization (WTO) obligations on the transparency of its domestic
support measures. Separate from this Agreement, as part of a WTO
dispute brought and won by the United States, China previously agreed
to comply with its WTO obligations on its domestic support for rice and
wheat by March 31, 2020. The United States maintains the right to take
actions related to that dispute.

 Tariff Rate Quota Administration: China has agreed to comply with its
WTO obligations and to make specific improvements to its
administration of wheat, corn, and rice tariff-rate quotas (TRQs),
including the allocation methodology, treatment of non-state trading
quota applicants, and transparency. Separate from this Agreement, as
part of a WTO dispute brought and won by the United States, China
agreed to comply with its WTO obligations for the administration of
TRQs for wheat, corn, and rice by December 31, 2019.

 Sanitary and Phytosanitary Measures: The Phase One agreement

streamlines and establishes timeframes for Chinese regulatory actions
for meat, poultry, seafood, dairy, infant formula, rice, potatoes,
nectarines, blueberries, avocadoes, barley, alfalfa pellets, hay, feed
additives, distillers’ dried grains (DDGs), distillers’ dried grains with
solubles (DDGS), and pet food. The Parties agreed to not implement food
safety regulations that are not science- and risk-based and shall only
apply such regulations to the extent necessary to protect human life or
health. In addition, recognizing the importance of ensuring that
sanitary and phytosanitary (SPS) measures are science-based, non-
discriminatory, and account for regional differences, the Parties have
agreed that China will improve SPS measures affecting a wide variety of
products, which will facilitate exports of U.S. food and agricultural
products to China.

 Geographical Indications (GIs): China has agreed to not undermine

market access for U.S. exports to China using trademarks and generic
terms through any GI measures taken in connection with an
international agreement, to use certain relevant factors when making
determinations for genericness, and to not provide GI protection to

2
 individual components of multi-component terms if the individual
component is generic.

 Intellectual Property for Agriculture: China has agreed to prohibit the

unauthorized disclosure of undisclosed information, trade secrets, or
confidential business information by government personnel or third-
party experts or advisors when such information is submitted to the
central or sub-central levels of government.

Specific Elements of the Agreement

 China’s Imports of U.S. Agricultural and Seafood Products: China will

purchase and import on average at least $40 billion annually of U.S. food,
agricultural, and seafood products, for a total of at least $80 billion over
the next two years. Products will cover the full range of U.S. food,
agricultural, and seafood products. On top of that, China will strive to
import an additional $5 billion per year over the next two years. China
and the United States recognize that purchases are to be made at market
prices based on commercial considerations and that market conditions
may dictate the time of year that agricultural purchases are made within
any given year.

 Agricultural Biotechnology: China has agreed to implement a

transparent, predictable, efficient, science- and risk-based regulatory
process for the evaluation and authorization of products of agricultural
biotechnology. China’s average time frame for review and authorization
of products for feed or further processing will be an average of 24
months. China has also agreed to certain administrative improvements
in the application process, including pre-screening of applications for
completeness, timely submission and review of information for the
National Biosafety Committee, extending authorizations to five years,
accepting applications on a year-round basis, not requesting
information unnecessary for assessing the safety of the product for its
intended use, and issuing biosafety certificates within 20 business days
of completion of the safety evaluation. China also agreed to certain steps
to address situations of low-level presence and to develop safety
assessment procedures for approval of food ingredients that are derived
from genetically modified microorganisms.

 Food Safety: China and the United States have agreed to not implement
food safety regulations, or require actions of the other Party’s regulatory
authorities that are not science- or risk-based and to apply regulations

3
 and require such actions only to the extent necessary to protect human
life or health. China also has agreed to not require certification for low
risk food products from the United States.

 Poultry: U.S. exports of poultry meat products to China were valued at

over $500 million in 2013 and have the potential to reach or exceed $1
billion annually. On November 14, 2019, China reopened its market to
U.S. poultry meat, partially eliminating the ban it had imposed in late
2014.

U.S. establishments can only export to China poultry that is slaughtered

and further processed after the establishment has been added to the
General Administration of Customs of the People’s Republic of China
(GACC) website. On November 22, 2019, GACC completed updating an
initial online list of 349 U.S. establishments eligible to export to China.

The Parties will next work to finalize a protocol for the regionalization of
poultry diseases. China has also committed to fully lifting the ban on
other U.S. poultry commodities, including live birds. Furthermore, China
committed to abide by World Organization for Animal Health (OIE)
standards for international trade of poultry products.

 Pork: U.S. exports of pork products were $700 million in 2017 and are
expected to reach $1.7 billion annually in the next two to three years.
China agreed to broaden the list of pork products that are eligible for
importation to include processed products such as ham and certain types
of offal that are certified by USDA’s Food Safety and Inspection Service
(FSIS) for human consumption.

 Beef: China will expand the scope of beef products allowed to be

imported, eliminate age restrictions on cattle slaughtered for export to
China, and recognize the U.S. beef and beef products’ traceability system.
China will establish maximum residue levels for three synthetic
hormones legally used for decades in the United States consistent with
Codex Alimentarius Commission (Codex) standards and guidelines.
Where Codex standards do not exist, China will use MRLs established by
other countries that have performed science-based risk assessments.
USDA estimates that U.S. beef and beef product exports to China could
reach $1 billion annually.

 Processed Meat: China effectively banned processed meat and poultry

products in 2012 when it instituted an onerous registration process for

4
 exporting to China. Through this agreement, China immediately
recognizes oversight of U.S. meat, poultry meat, and processed meat and
poultry meat facilities by USDA’s FSIS, thereby eliminating any unique
registration requirements. It is estimated that these provisions could
result in $10-25 million annually of processed meat and poultry exports
to China.

China also agreed to conduct a risk assessment for ractopamine, which is

sometimes used in the production of U.S. beef and pork, in a manner
consistent with international risk assessment guidance. The risk
assessment is to be based on verifiable data and the approved conditions
of ractopamine use in the United States.

 Electronic Meat and Poultry Information System: China will

implement, by February 2020, FSIS’ Public Health Information System,
an electronic and automated system for foreign countries to access FSIS
meat and poultry export certificates. China will ensure relevant
certificate information is shared in a timely manner to the Chinese port
customs officials to prevent undo delay for clearing such shipments at
the port of entry. China also will accept replacement certificates issued
by FSIS for situations consistent with Codex guidelines.

 Live Cattle for Breeding: China banned the import of live cattle from the
United States following the detection of bovine spongiform
encephalopathy (BSE) in 2003. Through this Agreement, China will
immediately engage in technical discussions with the United States to
lead to a final market access agreement. The United States exported $4.5
million in live breeding cattle to China in 2003. With the conclusion of a
commercially viable protocol, U.S. exports of live breeding cattle to China
could reach $25 to $50 million annually.

 Dairy and Infant Formula: China has committed to streamline the

timelines and procedures for registering U.S. facilities and products and
to provide regulatory certainty and market stability for products like
fluid milk and dairy permeate powder. For example, upon receiving a list
of U.S facilities eligible to export to China from the U.S. Food and Drug
Administration (FDA), GACC will update its website with the list of
facilities within 20 business days. In addition, China also committed to
open its market for goat and sheep’s milk products. The United States
estimates the dairy and infant formula commitments could result in an
additional $250 to $300 million in annual dairy and infant formula
exports to China above current levels.

5
 Rice: China will authorize the importation of U.S. rice from any rice
facility approved by USDA’s Animal and Plant Health Inspection Service
(APHIS) within 20 business days of China’s receipt of a notification from
the United States that APHIS has approved the facility as compliant with
the phytosanitary protocol agreed to by the United States and China.
China also communicated that U.S. medium grain rice will be able to be
imported under China’s tariff rate quota for “Rice, short and medium
grain.” This action will allow U.S. rice to compete with comparable rice
grades in the Chinese market. With these commitments and China’s
commitments to abide by WTO commitments for administration of the
rice TRQ, USDA estimates that U.S. rice exports could reach or exceed
$300 million annually.

 Seafood: China has agreed to allow the import of 26 previously

unapproved aquatic species through a side letter that accompanies the
Agreement. China has also committed to streamline the timelines and
procedures for registering U.S. seafood facilities and products, including
fish meal and oil, by updating its facility registrations within 20 business
days of receipt of a list from FDA and the National Oceanic and
Atmospheric Administration (NOAA). China will ensure the continued
use of existing bilaterally-agreed certificates issued by NOAA. In
addition, competent authorities in the United States and China will
reconvene their technical working group on seafood. The United States
estimates these commitments could result in an additional $400 million
in annual aquatic product exports to China above current levels.

 Fruits, Vegetables, and Plant-based Feed Products: China has agreed to

finalize phytosanitary protocols for certain U.S. fresh fruit and vegetable
products, including potatoes, California nectarines, blueberries, and
avocadoes, as well as barley, alfalfa hay pellets and cubes, almond meal
pellets and cubes, and timothy hay. The Agreement stipulates binding
timelines for completion of the phytosanitary protocols to ensure there
are no delays in the technical process. These protocols will expand
access for U.S. fresh fruits and vegetables and plant-based feed exports
into the Chinese market, which is estimated at $850 million annually.

 Feed Additives, Premixes, and Compound Feed, including DDGS: China

has agreed to immediately update its list of traditionally-traded feed
additive products with 23 U.S. products and to streamline the
registration process for feed additives, premixes, and compound feed by
waiving manufacturer site visits and export protocols that are normally

6
 part of the registration process for feed products. Upon receipt of a list
from the United States, China has agreed to list the registered facilities
on GACC’s website within 20 business days. For applications for
approval of a new feed additive, premix, or compound feed product,
timeframes are established for China’s review process. With regard to
DDGs and DDGS, China has agreed to issue renewed licenses for DDGs
and DDGS manufacturers within 20 business days of receiving
applications. USDA estimates that U.S. exports of these products could
exceed $700 million annually.

 Pet Food: China has agreed to immediately resume imports of pet food
containing poultry ingredients and to lift the ban on ruminant
ingredients. In addition, China has agreed to allow imported animal-
origin ingredients in pet food. China has also agreed to limit the
Polymerase Chain Reaction (PCR) testing to pet food with non-ruminant
ingredients, which is to be done on a risk-based selection of
shipments. China agreed to streamline the facility registration process,
by eliminating the requirement for facility questionnaires, and to
immediately register 24 facilities that had been waiting to be listed on
GACC’s website. USDA estimates U.S. exports could exceed $300 million
annually.

 Tariff Rate Quotas and Domestic Support for Corn, Wheat, and Rice:
Related to the WTO dispute brought and won by the United States, China
has agreed to comply with its WTO obligations for the administration of
TRQs for wheat, corn, and rice by December 31, 2019. In addition, in this
Agreement, China has agreed to ensure that it administers its TRQ for
corn, wheat, and rice with specific obligations to:

 Allocate the full TRQ by January of each year;

 Not discriminate between state trading enterprises and non-state
trading enterprises;
 Reallocate unused or returned TRQ amounts;
 Ensure that allocations are made in commercially viable shipping
amounts;
 Enhance transparency of the eligibility criteria and allocation
principles;
 Ensure there is a sufficient number of state trading enterprises and
non-state trading enterprises eligible to receive allocations and that
full utilization of the TRQs is not inhibited;
 Provide relevant allocation and reallocation information upon
request of the United States; and

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  Make public on a website existing laws, regulations and
announcements on the administration of the TRQs.

Regarding its domestic support, China confirms that it will respect its
WTO obligations to publish in an official journal its domestic support
laws, regulations and related measures. Separately, through dispute
settlement proceedings at the WTO, China has already agreed to come
into compliance with a panel report on domestic support for wheat and
rice by March 31, 2020. The United States maintains its rights in those
dispute settlement proceedings should China not come into compliance.

 Cooperation: China and the United States intend to continue to work

cooperatively on various projects to expand markets and promote
growth in trade of food and agriculture, including on pesticide
registration regulatory processes, sustainable agriculture, animal and
plant pests and diseases, and agricultural policies.