(Source: CCTV News "Voice of China", 2024-12-28)
The Ministry of Commerce issued an announcement yesterday (27th) to initiate an investigation into safeguard measures against imported beef. According to the announcement, the Ministry of Commerce received the "Application for Investigation of Safeguard Measures in the Beef Industry of the People's Republic of China" formally submitted by the China Animal Husbandry Association and other applicants on behalf of the domestic beef industry, and decided to initiate a safeguard measure investigation into imported beef starting from December 27, 2024.
The application shows that my country’s beef import volume has increased sharply from 2019 to the first half of 2024, with its market share in China rising from 20.55% to 30.90%, and its proportion relative to China’s total output rising from 24.87% to 43.87%, causing serious damage to China’s domestic industry. The applicant requested a safeguard investigation into imported beef. So, what are safeguards? Under what circumstances can relevant industries request a safeguard measure investigation? What impact will this have on my country's beef import and export w88?
Announcement of the Ministry of Commerce on launching safeguard measures investigation on imported beef (Ministry of Commerce website)
In recent years, the living standards of urban and rural residents have continued to improve, and the consumer demand for beef is strong. Due to the large gap between domestic and foreign beef prices, beef imports continue to increase. The relevant person in charge of the China Animal Husbandry Association said that in 2013, my country's beef import volume was less than 300,000 tons, and it had reached 2.74 million tons in 2023, an increase of more than 8 times, equivalent to 36.4% of domestic production. Beef has become the largest imported meat product that year. Amid serious losses in the domestic industry, beef imports have surged since 2024, with imports of 2.6 million tons from January to November, a year-on-year increase of 4.3%. Zhu Cong, chief beef and mutton analyst of the agricultural product market warning team of the Ministry of Agriculture and Rural Affairs, said that since June 2023, the monthly import volume of imported beef has exceeded 200,000 tons for 18 consecutive months, which has had a serious impact on the domestic cattle industry.
Zhu Cong: The core reason is that the price difference is relatively large. The domestic price, the data we monitor is about 66 yuan per kilogram, which is still much higher than the international market price, which is about 40 yuan. China has always had a relatively open attitude towards beef imports. Except for epidemic restrictions, we generally negotiate with various countries. As long as the beef meets the requirements, we will hold a licensing attitude. However, in the past two years, due to the relatively low breeding costs in some countries, and there may be some subsidies, the gap with our domestic prices is relatively large, which has a greater impact on the country, so I think the current investigation is a more reasonable measure.
The relevant person in charge of the China Animal Husbandry Association said that when the domestic beef cattle breeding market is sluggish and most farmers are losing money, a large amount of imported beef is undoubtedly "making matters worse". Domestic beef and live cattle prices have fallen rapidly. The current beef price has fallen to the lowest level in the past five years, and the live cattle price has fallen to the lowest level in the past 10 years. Statistics show that the average loss for a beef cow sold for slaughter in November this year was more than 1,600 yuan, and the loss exceeded 1,000 yuan for eight consecutive months. More than 65% of the cattle farmers were in the red. At the same time, many farmers take loans to raise cattle. If the cattle cannot be sold at a high price, the loans cannot be repaid. Even if they can barely repay, they will be heavily in debt and have to quit the industry. What is even more serious is that cows are sold and slaughtered in large numbers, affecting industrial safety. Tu Xinquan, dean of the China WTO Research Institute at the w88 casino, said that in this case, safeguard measures, a w88 remedy measure allowed by WTO rules, will likely win adjustment opportunities for related domestic industries.
Tu Xinquan: Safeguard measures are one of the three w88 remedy measures allowed by the WTO. w88 remedy measures refer to a temporary w88 restriction measure that each country can implement when the import of a certain product in a country increases too fast and causes damage to the domestic industry. There is a big difference between safeguard measures and anti-dumping and countervailing measures. They target imports from all countries, rather than imports from specific companies or countries. The increase in imports targeted by safeguard measures is not due to unfair competition, or because the companies or governments of the other country have violated WTO rules or fair w88, but refers to the surge in imports caused by unpredictable market conditions, which has caused damage or adverse effects on domestic industries. At this time, the importing country can adopt temporary w88 restrictive measures to reduce imports and give domestic industries an opportunity to adjust. After a period of time, we will cancel these temporary w88 restrictive measures.
According to the announcement of the Ministry of Commerce on filing a safeguard investigation on imported beef, interested parties should register with the w88 Remedy and Investigation Bureau of the Ministry of Commerce to participate in this safeguard investigation within 20 days from the date of the announcement. Tu Xinquan introduced that according to data released by the WTO, from the establishment of the WTO on January 1, 1995 to the end of December 2024, 55 WTO members have initiated safeguard measure investigations, with a total number of 437 cases, covering 18 major categories of products including agricultural products and non-agricultural products.
Tu Xinquan: Compared with other countries, although it is a temporary import restriction measure, we are also very cautious in using it. We have only initiated two safeguard measures investigations so far, one for steel and one for sugar. In the past few years, beef imports have grown rapidly, which has caused certain difficulties for domestic livestock industry employees and related corporate profits, employment, etc. In this case, animal husbandry-related enterprise associations are eligible to apply to the state for the implementation of safeguard measures to protect their legitimate interests. After several months of investigation, we will finally come to a conclusion. If we take measures, generally speaking, we may increase import tariffs or set a certain import quantity.
The announcement shows that this investigation will begin on December 27, 2024, and will usually be completed within 8 months. It may be extended appropriately under special circumstances. Tu Xinquan said that unlike anti-dumping and countervailing measures, relevant measures cannot be taken during the investigation of safeguard measures; however, the issuance of the announcement of the investigation will have a stabilizing effect on the domestic beef industry.
Tu Xinquan: Many w88 orders are mid- to long-term, because beef production has a time cycle, and some contracts may be long-term. For example, if you sign a contract now, it will be for next year. For export companies, it seems that China is launching a safeguard measure investigation. After several months of investigation in the future, measures may be taken, which may have a certain expected impact on these related import and export companies. Generally speaking, this is the response of the Ministry of Commerce in accordance with our country's laws, WTO rules, and reasonable complaints made by our enterprises and practitioners. This is what the government should do to protect our country's related industries and interests.
As Tu Xinquan said, the safeguard measure is a temporary w88 restriction measure after all. Looking at the long term, what measures should my country's beef industry take to win the initiative in international competition? Zhu Cong said that my country should continue to promote large-scale breeding support measures to reduce costs and increase efficiency, and improve the international competitiveness of my country's beef industry.
Zhu Cong: Our country will continue to maintain the current pace of domestic production, but now there is a period of surplus domestic supply, and the industry will be in an adjustment stage in the next 1 to 2 years. For farmers, our country will continue to promote large-scale support measures, encourage capable and qualified farmers to continue to expand large-scale production, reduce the cost of beef breeding, and improve our own competitiveness.
Attached original text link:https://content-static.cctvnews.cctv.com/snow-book/index.html?item_id=2823411811212938027& toc_style_id=feeds_default&track_id=925BFA98-0C94-47E4-94AC-B8BB1A7D1B64_757075140943&share_to=wechat
