The American Soybean Association (ASA) is calling for all U.S. soybean producers to immediately contact their congressional representatives to express strong support for approval of Permanent Normal Trade Relations (PNTR) for China. During the last five years, China has gone from a net exporter of soybeans to the biggest export buyer of U.S. soybeans.

"China has become a billion dollar market for U.S. soybeans and soy products," said ASA President Marc Curtis. "If Congress fails to approve PNTR for China, the benefits of increased demand for soybeans and soybean meal in China will accrue to U.S. competitors in South America and India."

U.S. soybean producers have a great deal to lose and much to gain by continuing to trade with China. Of the $13 billion worth of all U.S. product exports to China in 1999, nearly $900 million (more than 6 percent of total U.S. exports) was soybeans, soybean meal and soybean oil. According to industry estimates, demand for soybeans in China could double in the next five to ten years.

PNTR is an extension of trading privileges similar to those that have been approved by Congress on an annual basis every year for the last 20 years. Formerly know as Most Favored Nation (MFN) status, PNTR simply formalizes China’s present trade status on a long-term basis.

"U.S. soybean producers have been promoting exports of soybeans to China since 1982," Curtis said. "Last year’s historic U.S.-China WTO negotiations for agriculture will be a tremendous asset to U.S. farmers only if Congress approves Permanent Normal Trade Relations with China."

U.S. producers have made substantial investments of soybean checkoff dollars and cost-share funding from USDA’s Foreign Agricultural Service in development of the China market.

China already has broad access to markets in the U.S. In 1999, the United States imported six times more goods from China than China purchased from the U.S. When China joins the WTO, the United States will give up nothing, and stands to gain a great deal through Chinese trade concessions that will only be realized if Congress approves PNTR status for China.

ASA/China Country Director Phil Laney said, "China's membership in the WTO will foster development of a market-based economic system. China will incur the responsibility to bring its trade practices into conformity with international rules and subject it to the WTO dispute resolution system. This is important both in building the concept of rule of law in China, and in improving a weak commercial legal system that allows local officials to interpret national law in different ways and discriminate against imported goods. These developments will assist us in building markets for U.S. agricultural products while strengthening China's legal system."

China is already making important political, social and economic reforms. The best way for the United States to continue to positively influence policy changes in China is for Washington to strengthen trade relations with Beijing. If the U.S. does not establish PNTR with China, communications between the U.S. and China will deteriorate, and U.S. producers will be disadvantaged while China must source the products it needs from other countries.

"An additional benefit of China's membership in the WTO will be its commitment to adhere to the rules of the WTO's Sanitary and Phytosanitary Agreement and to specific science-based requirements for any trade restrictions on food imports," Laney said.

Growers wanting to learn more about the importance of PNTR for China should visit the American Soybean Association’s web site at www.amsoy.org where a special PNTR area has been created. The site includes testimonials, slide shows, and a series of eight RealVideo presentations recorded in China only three weeks ago. Growers can meet and listen to comments from some of their customers in China to learn first-hand why the Chinese want to continue buying U.S. soybeans.

ASA is encouraging soybean producers to call their U.S. representative today to urge them to vote in favor of China PNTR. Members of Congress can be reached by calling the Capitol Hill switchboard at 1-202-225-3121. Producers may also send a letter or an email to their representative, or call the Business Coalition for U.S.-China Trade Hotline, toll-free, at 1-877-611-8723 to automatically generate letters in support of PNTR that will be sent to their representative.

"We cannot afford to loose China as a market for our soybeans," Curtis said. "Our future profitability is at stake and the time to act is now, before Congress begins the PNTR debate on May 22."