Grassley May Rethink China Accord Support

March 22, 2000

Sen. Charles Grassley (R-IA) told China's trade minister he may have to rethink his support of normal trade relations with the PRC unless China abides by the terms of the meat component of the agreement signed in December. It was one of two issues Grassley raised with Vice Minister Long Yongtu.

"I understand that China has insisted that it needs more information on our meat processing plant certification process when a great deal of information has already been provided," Grassley said in a letter to Long. "China's continued unwillingness to abide by its commitments under this agreement is detrimental to many of my constituents.

"This unfortunate development may cause me to rethink my support for granting China permanent normal trade relations at this time. I greatly regret this turn of events. But the resolution of this matter is now in China's hands."

A second issue Grassley raised involves U.S. accession to China's fertilizer market. "As you know," he said in the letter, "fertilizer trading rights were part of the April 1999 version of the U.S.-China bilateral market access agreement but were omitted in the November 1999 memorandum of understanding reached between the United States and China in Beijing."

Fertilizer is the fourth largest U.S. export to China, said Grassley, "yet China has implemented an arbitrary policy restricting access of U.S. fertilizer producers to China that is completely contrary to the free trade principles at the heart of the World Trade Organization."

There has been "some progress in resolving this issue," he added, but he urged China to resolve it so that the United States and other WTO member nations have open access to China's fertilizer markets.