An agreement signed Monday clears the way for live equine exports to China, a development with great potential for Kentucky horse breeders.

The agreement, signed by U.S. Ambassador to China Terry Branstad and Minister Zhi Shuping of the People’s Republic of China, clears the way for China to import all breeds of U.S. horses, including thoroughbreds.

The agreement was called a “game-changer” by Kentucky Agriculture Commissioner Ryan Quarles, who expects Kentucky horse breeders to capitalize on China’s growing horse-racing industry.

Kentucky is the leading exporter of live horses in the United States, responsible for $195 million, or 65 percent, of the total U.S. exports of live horses.