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ASA Urges President Clinton to Extend MFN for China

May 13, 1996

The American Soybean Association and a group of 23 other farm organizations and agribusinesses representing all sectors of US agriculture, today urged President Bill Clinton to unconditionally renew China's Most Favored Nation (MFN) trading status. ASA Executive Committee member John Blaska, a producer from Marshall, Wisconsin, and Chairman of ASA's International Promotion Committee said, "Failure to extend MFN status would jeopardize a vital market for US agricultural products, and would undercut the United States' goal to expand opportunities for agricultural trade." China is widely considered the most important growth market for US agricultural exports in the 21st century. In 1995, US agricultural sales to China totaled $2.6 billion -- more than twice the 1994 level. US soybean and soy product exports to China last year exceeded $330 million, and industry projections indicate that China will account for 37 percent of future growth in total US agricultural exports.

Current US policies reflect a firm commitment to expanding world markets as government support for agriculture is reduced. These policies include efforts to increase access to global markets as government export assistance programs are phased down under the Uruguay Round Agreement. ASA First Vice President David Erickson, a producer from Altona, Illinois, and Chairman of ASA's Public Affairs Committee, said, "The importance of this commitment has been underscored by the new Farm Bill, under which Federal support for farm income will decline in coming years. Any change in trade policy that would endanger US agricultural exports to a key foreign market such as China would violate a fundamental commitment to the US agriculture industry."

"Members of the American Soybean Association believe the proper means for improving relations with China is through constructive engagement based on clearly defined objectives including efforts to promote greater access for American agricultural products," Erickson added. The Administration is pursuing this course in the current negotiations on China's accession to the World Trade Organization. "Renewing MFN status for China will enable this proactive approach to improving relations to continue," Erickson said.

The groups joining ASA in this effort are the Agricultural Retailers Association, American Farm Bureau Federation, American Seed Trade Association, Cargill, Inc., ConAgra, Corn Refiners Association Farmland Industries, Millers' National Federation, North American Export Grain Association, National Broiler Council, National Barley Growers Association, National Council of Farmer Cooperatives, National Corn Growers Association, National Cottonseed Products Association, National Grain and Feed Association, National Oilseed Processors Association, National Sunflower Association, National Turkey Federation, Northwest Horticultural Council, The Fertilizer Institute, US Canola Association, US Feed Grains Council, and USA Rice.