Pakistan and China’s $15-bn meat market

Author: Yasir Habib Khan

With multiple challenges, Pakistan is edging closer to making its debut as a meat exporter country, with an eye firmly on China’s meat market which is worth around $15 billion annually. Recently, Pakistan company “Organic Meat Company Ltd” (TOMCL) received the official approval for registration with Chinese Custom Authorities to make a start to export heat treated beef meet to China.

Along with new development, arduous efforts are on the way as special focus is likely to be furnished on how Pakistan can get status of international meat export country in upcoming Joint Cooperation Committee (JCC) meeting under CPEC framework on agriculture and Livestock. Further thrust is going to be made on full activation of China Pakistan Free Trade Agreement (CPFTA) phase II that incentivises Pakistan exports items including meat and Chinese’s assistance to vaccination & training to Pakistan exporters and Livestock growers.

With maturity in coordination and affinity between China and Pakistan on Joint Working Group (JWG) on agriculture with its sub-sector Livestock, however there are array of challenges that are impediments in the progression of Pak-China meat trade scenario.

These formidable challenges signify Pakistan’s inability to develop Foot and Mouth Disease (FMD) free zones. Internationally, unless a country receives FMD-free certification it cannot export. There are a global set of standardisations, especially Sanitary and Phyto-Sanitary (SPS) measures for human health which are binding on all WTO countries. Pakistan falls short of SPS compliance. Others regulations regarding farming, quarantining, slaughtering, processing, packaging and refrigerating that Pakistan has to fulfill are unmet so far.

At present, it is reality that Pakistan does not qualify to export meat to China as Pakistan has yet to meet multiple rules & regulations and certain global benchmarks set as eligibility criteria for international meat exporters including Pakistan in the world.

Internationally, unless a country receives FMD-free certification it cannot export. There are a global set of standardisations, especially Sanitary and Phyto-Sanitary (SPS) measures for human health which are binding on all WTO countries. Pakistan falls short of SPS compliance

As per perception of Pakistan Livestock & Dairy Development Board, China, world’s largest import market, which happens to share a border with us, has been providing Pakistan competitive access to its meat market. Under CPEC framework, beside others meat export to China might be a game-changer. Anyhow, big hurdle in the way is FMD free zone. Once this technical trade barrier is put to end, Pak-China meat trade will boom.

Meanwhile All Pakistan Meat Exporters & Processors Association (APMEPA) mentioned that Pakistan had tremendous credentials to exploit its meat export to China provided looming threat on dwindling animal production was addressed, breeding was increased on modern lines and Foot and Mouth Disease (FMD) Free Zones were established to uplift Pakistan image as animal disease free country.

It is true that Pakistan cannot export meat to China. Reason is that China has international protocols including FMD zones, SPS and others for all those wanting to gain status of meat exporter to China. Pakistan is struggling hard to fulfill them. Since challenges are haunting Pakistan, China has laid down incentives and policies in collaboration with government of Pakistan to unleash era of meat export as soon as possible.

In order to negotiate the challenge in connection with Chinese vision, Federal Minister for Planning and Development Asad Umar during reviewed the preparatory work before the 10th meeting of JCC – the highest bilateral decision-making body of CPEC, has issued clear direction to the Ministry of National Food Security and Research to select need-based specific agricultural projects for taking up with the Chinese counterparts and the foot and mouth disease-free zone for Balochistan before the conduction of JCC huddle.

During the recent visit of Chinese Vice President Wang on May 26-28, 2019, several memoranda of understanding were signed, one of which was regarding the establishment of an FMD (foot and mouth disease) free zone where vaccination would be administered. This will open opportunities for Pakistan in the export of meat and help in balancing trade deficit with China.

Pakistan at present stands at Stage II of FMD and expects to move to Stage III after the FMD-free zones are set up to control and eradicate the epidemic.

In January, 2020, former Chinese ambassador Yao Jing offered Pakistan to collaborate in removing non-tariff trade barriers to its farm exports, based on sanitary and phytosanitary (SPS) concerns during his meeting with Makhdoom Khusro Bakhtiar, minister for national food Security and research. “China has a great demand for meat and poultry and it could be lucrative international market for Pakistan and both countries must work together for removal of technical barriers like SPS and quarantine requirements,” former Chinese ambassador said.

Currently, meat from Pakistan is exported to Gulf countries, Vietnam and Malaysia. Minister Bakhtiar said a memorandum for the establishment of food and month disease free zone is currently negotiated by both the sides.

China singed FTA-II with Pakistan that came into effect last year. According to the estimates of ministry of commerce, the FTA–II will provide the opportunity to Pakistan to increase its exports to China by $4-6 billion in next five years. CPFTA will eliminate tariff on 313 tariff lines which will cover over $8.7 billion worth of Pakistan’s global exports and 90 percent of Chinese global imports. Prime Minister’s Adviser for Commerce and Investment Abdul Razak Dawood said on Twitter that the Chinese government had agreed to immediately reduce duties to zero per cent on 313 tariff lines. New list included meat and others various items.

Pakistan’s non-compliance with the international food safety and quality standards is still a biggest challenge. A special programme for improving Sanitary and Phyto-Sanitary (SPS) facilities and quality inspection services, in compliance with WTO, which demands for the establishment of an integrated National Animal and Plant Health Inspection Service (NAPHIS), is pending. NAPHIS has been proposed to act as a national food safety, animal and plant health regulatory body. If NAPHIS comes into action, it will fulfil the requirement of international accreditation. The EU has also urged for setting up NAPHIS, in compliance with international safety and quality standards.

In terms of exploring meat export to China, Pakistani livestock boasts rich endowment with the world’s 2nd largest herd size of Buffaloes, 7th largest of Cattle, 4th largest of Goats and 12th largest of Sheep. Moreover, Pakistan is a meat loving country with per capita consumption of red meat of c. 8.4 kg per annum. With the increasing trend towards hygiene and rising middle class of Pakistan, this is expected to grow in the coming years. By 2029, both meat production and consumption are expected to grow by 25 percent.

The writer is a senior journalist working for China Today and China Economic Net. He is founder and President of Institute of International Relations and Media Research (IIRMR). He can be reached at @yaseerkhann

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