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NCGA
to President Bush: Chinese Biotech Regulations Will Cost U.S. Sales
(2-1-02)
Citing important
trade principles that are at stake, the National Corn Growers Association
(NCGA), along with three other agricultural organizations sent a letter
this week to President George W. Bush concerning recent biotech regulations
released by the Ministry of Agriculture in the People's Republic of
China.
China has established
a deadline of March 20 to implement new regulations requiring safety
certificates for biotechnology enhanced agricultural products The letter,
co-signed by National Grain and Feed Association (NGFA), North American
Export Grain Association (NAEGA) and the U.S. Grains Council (USGC),
said,
"While we applaud the U.S. government's efforts to resolve the
many uncertainties surrounding China's policy covering biotechnology-enhanced
products, American farmers and commodity exporters are increasingly
impatient over lost sales opportunities. The recently published regulations,
effective March 20, 2002, are clearly trade restrictive and, if implemented,
will seriously disrupt our markets within China."
NCGA Corn Board
member and Dumas, Texas, farmer Dee Vaughan said while there has been
speculation over the intent of the new Chinese regulations, NCGA is
concerned about the lack of clarity in the proposed regulations and
with the effect they will have on U.S. exports.
"The Chinese
contend that they have not rejected nor delayed a single corn shipment
to date," said Vaughan. "However, sales are currently stalled
because U.S. exporters find the heightened risks of contract cancellation,
demurrage and vessel rejections unacceptable. We are concerned that
the Chinese government will use the policy to close off corn imports."
The letter
emphasized, "China's implementation of new registration requirements
for biotechnology-enhanced products must not prevent the U.S. corn industry
from taking advantage of a 5.85 million metric ton tariff rate quota
(valued at more than $500 million) this year.
The organizations'
letter
further pointed out, "With approximately 60 shipping days remaining
before China's biotech policy takes effect, specific requirements would
already have required clarification to avoid further lost opportunities
for sales and to ensure China's compliance with its World Trade Organization
obligations. Due to the unreasonable time limit, we ask that you take
all measures to press for an extension of the March 20 deadline."
Vaughan went on
to say, "This is an extremely vital issue for corn growers and
U.S. agriculture. International trade principles are at stake. We're
urging President Bush to address this issue during his February meeting
with Chinese President Jiang Zemin. We expect we can come to an agreement
that is workable for both sides.
Last reviewed
February 1, 2002
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