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ASA Expresses Confidence on Assurances Given by China

Oct 18, 2002

Upon learning that Chinese officials have agreed to a nine-month extension of the interim rules for the importation of biotech-enhanced soybeans, the American Soybean Association (ASA) expressed appreciation to the Bush Administration for its efforts to protect U.S. soybean exports to China. Valued at more than $1 billion, the Administration has received assurances from the highest levels of the Chinese government that there will be no disruption in the U.S. soybean trade due to biotechnology regulations or any other issues.

"Soybean producers are very pleased that the White House, Agriculture Secretary Ann Veneman, Deputy U.S. Trade Representative Jon Huntsman, Special Trade Negotiator for Agriculture Allen Johnson, and other agencies within the Administration have successfully protected our exports to customers in China," said ASA President Dwain Ford, a soybean producer from Kinmundy, Illinois. "There are still some unanswered questions on exactly how the new procedures will work, but overall, we feel these assurances are very positive to ensuring that U.S. soybean exports can flow unimpeded."

Within the last six years, China has made a dramatic transition from being a net soybean exporting country, to the largest single country customer for U.S. soybean exports. U.S. soybean exports to China had grown significantly in every marketing year up until last year, when uncertainties and confusion about new import regulations for biotech-enhanced crops caused a decline in exports of 42 million bushels, a 20 percent drop from the previous year.

The United States Trade Representative, the U.S. Department of Agriculture and other departments and government agencies, as well as other members of the Bush Administration, all worked together on this issue.

"Although we are pleased to have this extension, our goal is that permanent safety certificates be granted as soon as possible," Ford said. "ASA will continue to work with the Chinese government, the U.S. Trade Representative, and the U.S. Department of Agriculture, as well as with crop biotechnology providers and soybean traders, to help ensure that the new process works smoothly."