The American Soybean Association (ASA) has joined with a group of nearly 100 other agricultural organizations and food companies to urge Senate Majority Leader Trent Lott (R-MS) to act immediately to approve Permanent Normal Trade Relations (PNTR) status for China. ASA believes it is critically important that the Senate refrain from attaching any amendments to the House-passed PNTR bill.

"The House version of PNTR that was approved on May 24, represents a careful compromise that addresses many competing concerns," said ASA President Tony Anderson. "Any attempts to reconfigure this compromise with amendments could jeopardize ultimate passage of PNTR for China."

China’s entry into the World Trade Organization (WTO) is an exceptional opportunity for U.S. food and agriculture producers. With more than 20 percent of the world’s population and a rapidly growing middle class, China is broadly recognized as the most important growth market for U.S. agricultural and food exports.

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 U.S. exports to China in 1999, nearly $900 million (more than 6 percent) 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.

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. If the U.S. Senate 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.

"I’d rather not think about what might happen to the price of U.S. soybeans if the Senate doesn’t approve Permanent Normal Trade Relations for China," Anderson said. "China is now the largest export buyer of our soybeans. They’re a billion-dollar customer of our soybeans and soy products. A loss of any market that size would dramatically impact the price we get for our soybeans."

To realize the full benefits of China’s commitments, the United States must recognize China as a full WTO member by granting PNTR status. PNTR merely means that the United States will treat China the same as any other WTO member. The United States is giving up nothing, as U.S. tariffs will remain at their current level. What U.S. farmers will gain is access to one of the fastest growing markets in the world for food and agricultural products.

"I was very impressed with what I saw during my recent mission to China," Anderson said. "It takes an incredible amount of effort to produce enough food to feed more than a billion people. The Chinese I spoke with are very anxious to have a steady supply of high-quality U.S. soybeans. They are concerned that if the U.S. doesn’t give China normal trade status U.S. farmers will get hurt and Chinese consumers will have to pay more for food."

There are 1.3 billion people in China that are potential consumers for U.S. agricultural products grown, processed and manufactured in the United States. Without a trade agreement the U.S. would not only deny the Chinese access to U.S. markets, but the U.S. would be denied access to the China market.

"Would we rather trade with these folks, or would we rather give our competitors this $1 billion market," Anderson said. "We urge the Senate to approve the House-passed version of China PNTR legislation without amendments as soon as possible."