AreaChina (Mainland)

Commodity GroupRice

CommodityAll

Date15/01/2020

Policy CategoryTrade

Policy InstrumentTrade agreement

DescriptionAs part of the Economic and Trade Agreement between the Government of the United States of America (USA) and the Government of the People's Republic of China, agreed that, within 20 days of receiving a list of rice facilities deemed by the US Animal and Plant Health Inspection Service as compliant with the Phytosanitary Protocol on the Import of Rice from the United States to China, it would register them, publish their list and allow the importation of US rice from said facilities, while it retained the right to carry out on-site phytosanitary inspections of registered US rice facilities. Among the measures that pertain tariff rate import quotas (TRQs), the agreement foresees China allocating all rice, wheat and maize TRQs of a given year by 1 January of said year; applying uniform eligibility, allocation, return, reallocation requirements and penalties to the TRQ shares corresponding to state-owned enterprises and private sector entities; and reallocating all unused/returned portions of the TRQs by 1 October to a set of applicants that meet certain criteria. Concerning Chinese purchases of US agricultural products, the agreement envisages China importing USD 32 billion worth more of a range of US goods, including rice, than it did in 2017 by 31 December 2021. These purchases, alongside those of other products, would be conducted at market prices, based on commercial considerations, and with market conditions determining their timing within a year.