Expert: US recognition of China poultry inspections shows pragmatism – Global Times

Following Xinhua’s news that China is considering to remove restrictions on poultry imports from the United States, Global Times recently crossed wires while saying that the United States (US) Federal Register has carried a notice announcing Washington's recognition of China's poultry-product inspection systems, the first time since China proposed such exports to the US in 2004.

Key quotes

A Chinese expert said on Sunday this is a positive move toward reaching a bilateral trade deal and a sign that the two governments are being more pragmatic in trade negotiations.

A document published on the website of the US Federal Register on Friday said that the US has confirmed the equivalence of poultry-product inspection systems between the two countries. 

China thus joins a list of countries including Canada, Mexico, and Chile that are eligible to export cooked poultry products to the US.

The US move could lower the cost of China's exports of such products to the US and promote free trade between the two countries, Li Guoxiang, a research fellow at the Chinese Academy of Social Sciences, told the Global Times on Sunday.

"Food safety in the US is very strict, and the US used to use food standards to increase the cost of importing such products to create trade barriers for trade protectionism," Li said, adding that "recognizing China's inspection system of such products means the US is removing the trade barriers in this field."

"Focusing on specific products also means that the two governments are pushing toward a more pragmatic solution," Li said.

FX implication

Although early-Monday morning in Asia limits the market reaction to the news, this might diffuse the recent trade tension triggered through the US-side step back from earlier speculations that the US and China both agreed to roll back tariffs. As a result, the AUD/USD pair could rise from the current level around 0.6860.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: 50% Fib capping upside, bearish hammer on D1

EUR/USD's recovery rally from recent lows below 1.10 has stalled around the key Fibo level and a pullback could be in the offing. The pair has repeatedly failed to beat 1.1082.


GBP/USD turns flat on the day near 1.2920

GBP/USD extends its sideways grind above the 1.29 handle in the late American session as the USD largely ignores the FOMC's meeting minutes, which revealed that most policymakers saw October cut was warranted amid global weakness.


USD/JPY bounces-off 50-DMA but lacks follow-through

USD/JPY has bounced up from the 50-day MA support of 108.28. China's Vice Premier Liu He is cautiously optimistic about the prospects of the US-China trade deal. Related markets, however, are not buying Liu He's optimism, keeping the recovery in check. 


Gold: Doji on D1 questions bulls amid mixed trade sentiment

Although the United States’ (US) support for Hong Kong protesters favors the broad risk-off momentum, the mixed response from Chinese diplomats and a bearish candlestick formation question Gold buyers around $1,473 during early Thursday.

Gold News

Hong Kong now a feature in trade negotiations?

The US Senate and House have both passed the Hong Kong Human Rights and Democracy Bill, so now it heads to the desk of US President Trump to either sign or veto it. Sources suggest that the President will sign it into law.

Read more