Sunday, 26 May 2019

EU grants new quotas to Chinese duck meat in boost to productivity of poultry farms

The EU granted China individual country export quotas for duck meat on Monday, allowing China to export 6,600 tons of duck meat to the bloc. The new quotas can be expected to boost the international competitiveness of China's poultry industry while improving the industry standards, according to industry expert.

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According to the agreement, EU will impose a 10.9 percent tariff on the duck meat within the quotas, and 2,765 euros ($3,109) per ton for duck meat exceeding the quotas, China News Service reported Monday.

In previous years when China did not have a separate country quota for poultry exports to the EU, it could only compete with other countries for around 4 percent of the EU's global quotas, said the report.

In April 2015, China filed a complaint against the EU at the WTO over its high tariffs on Chinese poultry products. In 2017, the WTO ruled that the EU's tariff quotas on Chinese poultry products had violated WTO rules. The final agreement on the new tariff quota came after rounds of negotiations between China and the EU in November 2018.

"Thanks to the relatively strong production ability of China's poultry sector, more exports of duck meat to the EU will enhance domestic companies' competitiveness in the world and the Chinese market," Li Guoxiang, a research fellow at the Rural Development Institute of the Chinese Academy of Social Sciences, told the Global Times on Monday.

The new quota can also improve industry standards in China's poultry business. The EU has high quality and safety standards for poultry imports from all sources, and entering the market will require Chinese poultry products to meet certain criteria, which will drive standardized breeding in the domestic industry, according to Li.

For instance, the abuse of hormones to help birds grow will not be allowed, he said. Standards like this will drive domestic poultry companies to pursue high-quality products and safety standards, which will give them edges to expand in other overseas markets, Li said.

 

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