Despite a pledge in early 2020 to do so, China has not shortened the average time — more than two years — that it takes to decide whether to approve agricultural biotechnology products for import, said the Biden administration in an annual review. The slow-moving process disrupts U.S. farm exports and the commercialization of new strains of corn, soybeans, canola, and alfalfa, said the report from the U.S. trade representative’s office (USTR).
“China remains a difficult and unpredictable market for U.S. agricultural exporters, largely because of inconsistent enforcement of regulations and selective intervention in the market by China’s regulatory authorities,” said the report. “China’s unwillingness to routinely follow science-based international standards and apply regulatory enforcement in a transparent and rules-based manner further complicates and impedes agricultural trade.”
Beijing is the world’s largest importer of cotton and soybeans and a top destination for wheat, corn, and sorghum. It is the No. 1 market for U.S. food and ag exports. Sales to China are forecast for $29.5 billion this fiscal year, or 17 cents of each $1 in farm exports.
The report said China’s approach to agricultural biotechnology “remains among the most significant commitments under the Phase One agreement for which China has not demonstrated full implementation.” In the 2020 agreement, China committed to use an efficient and science- and risk-based system to review biotech products and to speed up the approval process.
But, the average time for review still exceeds the target of 24 months and the approval process is “lengthy and opaque,” said the USTR report. The National Biotechnology Committee is required to meet twice a year but the meetings are not called on a regular schedule nor are the agendas widely shared with the public.
Since 2021, China has approved the import of several new strains of alfalfa, corn, cotton, soybeans, and sugarcane products, said the report. “Several of these approved products had been under review for more than 10 years.”
The report also said China continued to restrict imports of U.S. pork, beef, and poultry products. Beijing objects to U.S. use of growth stimulants for hogs and cattle. For poultry, China “has yet to confirm the restoration of market access” for states that have recovered from outbreaks of highly pathogenic avian influenza, it said.
“China remains the biggest challenge to the international trading system established by the World Trade Organization,” said U.S. trade representative Katherine Tai. “It has been 22 years since China acceded to the WTO, and China still embraces a state-directed, non-market approach to the economy and trade, which runs counter to the norms and principles embodied by the WTO.”
The annual report on Chinese compliance with WHO obligations is available here.