U.S. Releases 2025 Trade Assessment Report: Multiple References to Chinese Food and Cosmetics Sectors

The Office of the United States Trade Representative (USTR) has recently submitted the 2025 National Trade Estimate Report on Foreign Trade Barriers (NTE) to President Trump and Congress. Spanning 397 pages, the report outlines hundreds of tariff and non-tariff barriers affecting U.S. exports, with 48 pages specifically addressing trade issues with China.

The report assesses China’s implementation of the Phase One Agreement, noting that while China has made commitments in the agricultural sector (such as market access for meat and poultry), several key obligations remain unfulfilled. These include increasing transparency in the biotechnology approval process and conducting a scientific risk assessment for ractopamine. Additionally, China has failed to meet the purchase targets for U.S. goods and services stipulated in the agreement.

Regarding the administration of agricultural tariff rate quotas (TRQs), the report criticizes the lack of transparency in China’s allocation of quotas for wheat, corn, and rice. It claims these quotas primarily benefit state-owned enterprises. The U.S. has challenged China on this issue multiple times through the WTO dispute settlement mechanism.

In the area of food and agriculture, the report highlights China’s stringent import registration requirements (notably Decrees 248 and 249), which compel foreign food producers to register and submit sensitive commercial information, thereby raising export costs. The approval process for genetically modified products is described as slow and opaque, creating obstacles for U.S. agricultural exports. The report also notes that China's residue limits on pork and beef differ from international standards, and imports are often restricted on the grounds of animal disease outbreaks.

The report criticizes China’s requirement for cosmetics companies to disclose formulas and supplier details, asserting that this fails to adequately protect trade secrets. It also notes the imposition of mandatory local testing, which increases compliance burdens for foreign firms operating in China.