CHICAGO: A US dairy trade export group has partnered with a Chinese university to create a food science research centre, hoping to bolster relations and expand dairy exports from the United States into China, the group said in a statement.
The US Dairy Export Council (USDEC) signed a memorandum of understanding on Monday with China’s Jiangnan University, in the city of Wuxi, near Shanghai, to build the US-China Dairy Innovation Center at the school, the USDEC said.
The tie-up is occurring amid rising trade tensions between the world’s two largest economies, as the administration of President Donald Trump has imposed tariffs targeting Chinese products including solar panels, steel and aluminium.
Concerns that China would target US agricultural products for retaliation were borne out when China announced extra duties on US foodstuffs earlier on Monday.
China said the extra duties of up to 25 per cent would affect 128 US products including frozen pork, wine and fruits and nuts.
Still, the announcement between the USDEC and Jiangnan does highlight the interconnectedness of the two economies, even as the trade dispute escalates.
In addition to the created of the food science centre, the agreement aims to boost the development of food products for Chinese consumers that use US dairy as ingredients, help US dairy exporters better understand how to work with Chinese food manufacturers, and bolster the Chinese student’s academic research into dairy.
The agreement is the latest effort by the USDEC to boost business with China, including and agreement last year on US dairy plant registration and a unilateral reduction in Chinese cheese tariffs, said USDEC President Tom Vilsack.
“Asia generally is very important to the US dairy industry, and we need to build these long-term relationships,” said Vilsack, who was a former secretary of agriculture in the Obama administration.
China and Hong Kong combined were the third-largest export markets for US dairy products in 2017, behind Mexico and Canada. US dairy exports worldwide reached $5.48 billion in 2017, up 14 per cent from 2016, according to government and trade data.
However, the trade disputes — and the potential of tit-for-tat retaliation — do have Vilsack concerned. — Reuters
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