Ag Groups, Administration, Tout China Trade Benefits

March 2, 2000

Representatives of farm organizations and the Clinton Administration Wednesday told the Senate Agriculture Committee how they and the nation would benefit from normal trade relations with China and the U.S.-China trade agreement that is closely aligned with NTR status.

"We estimate that the U.S.-China World Trade Organization accession agreement could add an estimated $1.6 billion annually to U.S. exports of grains, oilseeds and products, and cotton by 2005," said Agriculture Secretary Dan Glickman. "U.S. export gains could approach $2 billion as the Chinese reduce their tariffs on other products such as poultry, pork, beef, citrus and other fruits, vegetables, tree nuts and forest and fish products. Growth in China’s economy, increased investment and market development should make the gains even greater. All these gains will mean higher prices for farmers and ultimately higher U.S. farm income."

Peter Scher, U.S. special trade negotiator, told the committee China’s WTO accession has implications deeper than what would happen with agricultural trade. "By integrating China more firmly into the Pacific and world economies, WTO accession will give China a greater stake in regional stability and prosperity. It will thus, together with our military presence in the Asia-Pacific and our regional alliances, be a factor in favor of long-term regional peace."

National Cattlemen’s Beef Association officials told the committee that for beef, the agreement would decrease tariffs from 45% to 12% over five years and eliminate China’s state trading entities. "This would mean that U.S. agriculture could deal directly with business and industry instead of going through government middlemen," they said.

The pork package negotiated as part of the agreement with China "has the potential, if fully and fairly implemented, to transform china into the single greatest export opportunity for U.S. pork producers," said John Hardin, Jr., Danville, IN, and a past president of the National Pork Producers Council. In China, pork is the dominant source of meat protein consumed, he added.