If you’re in the dietary supplement industry chances are you are directly or indirectly doing business with China. What does this new Phase One Deal mean to you?
At this point, not a whole bunch unless you are actually doing business on the ground in China. For those that are, you’ll find better protection and mechanisms for Intellectual Property including trademarks and copyrights as well as an end to forced sharing of trade secrets in situations of Joint Ventures. Also stronger pirated goods and anti-counterfeiting measures on e-commerce platforms. This especially pointed toward products that could cause a significant impact on public health or personnel safety.
On the agriculture side there is quite a bit listed in the agreement. In regards to health industry infant formula and diary in general was highlighted to increase surveillance of dairy products coming out of China due to the previous and ongoing threat of melamine adulteration.
More transparent and faster approval regulations in regard to imported diary and infant formula from the U.S. This also includes better regulations and market entry approvals for some whole fruits and vegetables.
In general the Trade Deal is looking to expand trade between the U.S. and China. Here is a direct quote from Chapter 6 Article 6.1 (1-4):
1.The Parties acknowledge that trade and economic structural changes resulting from this Agreement and from other actions being taken by China to open up its economy and improve its trade regime should lead to improved trade flows, including significant increases in exports of goods and services to China by the United States and other countries.
2.The Parties believe that expanding trade is conducive to the improvement of their bilateral trade relationship, the optimal allocation of resources, economic restructuring, and sustainable economic development, given the high degree of complementarity in trade between them.
3.The Parties recognize that the United States produces and can supply high-quality, competitively priced goods and services, while China needs to increase the importation of quality and affordable goods and services to satisfy the increasing demand from Chinese consumers.
4.The Parties accordingly seek to work constructively and cooperatively toward an improved bilateral trade relationship and to explore appropriate steps to facilitate increased trade.
The deal is scheduled to increase exports to China by $200 billion over a two year period, unfortunately dietary supplements aren’t listed in the below chart:
If you’d like to see the entire “Phase One”document, CLICK HERE
Also here is a good basic break down of the overall agreement from Financial Times. CLICK HERE TO VIEW