|
Corn
Growers Welcome China into WTO (12-11-01)
China
entered the World Trade Organization (WTO) on Tuesday, following action
by the Ministerial Conference that approved the terms of entry. China,
now officially the 143rd member of the WTO, enters the organization
after 15 years of negotiation and planning.
"Our farmers
are the best in the world, and trade with China will boost the rewards
of production," said Tim Hume, a Colorado corn grower, and president
of the National Corn Growers Association (NCGA).
"This past
week we have seen the importance of trade on the legislative level,
with the passage of Trade Promotion Authority, and this week we see
the importance of trade on an international level." Hume continued,
"We can now use TPA and the WTO negotiations to mutually enhance
our trade relationship, adding benefit, and generating prosperity, in
both countries. NCGA looks forward to working with our colleagues at
U.S. Grains Council and Meat Export Federation to expand international
markets for U.S. corn."
China, was granted
accession at the Doha, Qatar, meeting, and had 30 days to ratify the
agreement. On Dec. 11, the ratification by China's Parliament was completed.
As a result of the WTO entrance and the accompanying agreements, all
indications point to further liberalization of trade and economic reform
within the country. China, a vast market for U.S. agriculture goods,
hosts one of the world's largest economies, and continues to experience
6 to 10 percent growth annually.
Before entering
the WTO, China agreed to several measures that reduce farm subsidies
the nation distributes to producers. China will cap farm subsidies at
8.5 percent of the value of domestic farm production, and will drop
duties on farm goods to 17 percent from 22 percent. Import tariffs on
some value-added goods had been as high as 85 percent; under the agreement
such exorbitant tariffs will fall to as low as 9 to18 percent.
On the lessening
of trade barriers, Hume noted, "A reduction of tariffs not only
makes more sales possible," he added, "but it makes present
sales more profitable. On Nov. 29 we witnessed the impact of foreign
purchases of U.S. Corn - China bought 500,000 metric tons and the price
of corn increased 8 3/4 cents." s
For more information
on NCGA and trade, click on http://www.ncga.com/trade/main/index.html.
Last reviewed
December 11, 2001
|