The American Soybean Association (ASA) today applauded the signing by President Bill Clinton of legislation authorizing Permanent Normal Trade Relations (PNTR) between the United States and China. Passage of PNTR for China has been a soybean industry legislative priority for more than two years. For U.S. soybean producers, PNTR for China is the cornerstone of trade relations that will facilitate exports of U.S. agricultural products to China, both now and in the future.

"PNTR for China is the single most important piece of trade legislation that the ASA has backed in the last ten years," said ASA President Tony Anderson, a soybean producer from Mount Sterling, Ohio. "ASA and our state affiliates mounted an all-out grassroots policy campaign earlier this year that was instrumental in securing passage of PNTR in the House. We were extremely pleased that the Senate then provided strong support for this legislation, and that President Clinton has now signed the bill into law."

Passage of PNTR for China protects current U.S. soybean and soy product exports worth $1 billion, and makes possible future soy exports that could double in the next five to ten years according to industry estimates. Soybeans represented more than 7 percent of the total value of all U.S. exports to China in 1999.

Patrick Steel, Associate Administrator at the Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture (USDA) said, "China is the largest growth market for U.S. soybeans and PNTR puts in place a system to preserve that growth market and opens the market for soybean oil and soybean meal. This is an important agreement for U.S. soybeans and is in the best interest of America."

U.S. soybean producers, who have been promoting their soybeans in China since ASA opened its Beijing office in 1982, were well positioned to supply product to China when economic and political changes made imports feasible. ASA opened a second office in Shanghai in 1993 to further expand market development activities for U.S. soybeans in China.

"The soybean industry and most of agriculture realized early on that this was a one-way deal, that all of the benefits went to the U.S. farmer, and that we had to do everything we could to make sure it passed," Steel said. "Groups like the American Soybean Association were very effective with their farmers at the grassroots to reach out to members of Congress to let them know how important this was for passage."

In marketing year 95/96, China purchased a little more than 15 million bushels of U.S. soybeans. In 96/97, U.S. soybean exports to China jumped to 59 million bushels, then climbed to 70 million bushels in 97/98, and to 80 million bushels in 98/99. Last year, China became the largest single-country purchaser of U.S. soybeans at 191 million bushels, which represented almost 20 percent of total U.S. soybean exports in marketing year 99/00. (View chart.)

ASA’s Anderson said, "Working for beneficial farm and trade legislation is the most important thing ASA does to ensure the future profitability for U.S. soybean farmers. I would encourage all U.S. soybean producers to pause for just a few minutes to celebrate this important victory. Then as they go back to the business of harvesting this year’s crop, they can be confident in the knowledge that an important export market has been secured for their soybeans."

U.S. Soybean Exports to China 1995 to 2000
(millions of bushels):

In marketing year 95/96, China purchased a little more than 15 million bushels of U.S. soybeans. In 96/97, U.S. soybean exports to China jumped to 59 million bushels, then climbed to 70 million bushels in 97/98, and to 80 million bushels in 98/99. Last year, China became the largest single-country purchaser of U.S. soybeans at 191 million bushels, which represented almost 20 percent of total U.S. soybean exports in marketing year 99/00.