A new trade pact between the United States and China announced July 19 should increase exports of U.S.-grown rice through the West Coast, according to officials at the Port of Oakland.
The decision by China to open its import markets to U.S. grown rice is expected to greatly benefit the Port of Oakland, which is located near one of the largest rice producing regions of the country.
The new U.S.-China trade pact, which was announced July 19, should increase rice exports through the West Coast, the Port of Oakland said in a statement Friday.
American rice exports could enter China as soon as 2018 following approval of last month’s trade agreement.
The Port of Oakland said it’s too soon to estimate how much its business would increase, but that volumes should rise based on three factors, with one being that California’s Sacramento Valley, which is about 90 miles northeast of the port, is one of the largest rice producing regions in the U.S. The Port of Oakland is the nearest gateway to China for containerized rice exports from the valley.
In addition, Oakland is already the nation’s leader in containerized rice exports, shipping two-thirds of all that are sent from the U.S., according to the Norther California port. The port also provides one of the fastest, most direct routes from the U.S. to China.
The China trade deal comes as the U.S. dollar is softening against foreign currencies, which makes American products more affordable overseas. As a result, U.S. exports – including rice – are expected to grow.
“We’re glad a rice agreement has been reached because there’s strong demand for high-quality U.S. food products in China,” Port of Oakland Maritime Director John Driscoll said. “Given our location and track record with agricultural exports we would hope to play a role in this new trade breakthrough.”
In January, Oakland reported a 233 percent increase in agricultural export tonnage over the past five years. It said growing rice and meat shipments would magnify Oakland’s importance as an international food distribution hub.
California’s rice exports more than doubled between 2005 to 2015, according to state data, jumping from $320 million annually to $746 million. The state now accounts for about 40 percent of all U.S. rice exports, with Asian countries like South Korea and Japan being the primary recipients.
Port of Oakland to benefit from China opening rice market to U.S. imports
