Senators Press Bush on China Imports

The chairman and ranking Republican on the Senate Finance Committee have asked President Bush to pressure China to get rid of that country's restrictions on imports of U.S. soybeans. Chairman Max Baucus (D-MT) and Sen. Charles Grassley (R-IA) wrote Bush earlier this week regarding "recent Chinese government authority actions that restrict access for U.S. soybean exports and other agricultural commodities."

They urged Bush to "act quickly to resolve the problem" that began in early June when China's Ministry of Agriculture announced plans to implement regulations governing imports of genetically modified crops. "Unfortunately, China failed to either clarify how these regulations would be administered or provide assurances that shipments received would be allowed entry. This ambiguity resulted in the postponement or cancellation of soybean shipments valued at millions of dollars," the senators said.

On Sept. 27, the situation "further deteriorated" when China's national quarantine office issued new requirements for documentation, testing, and inspection of soybean shipments for noxious weeds, diseases, and foreign material. "The office imposed these requirements without scientific justification or opportunity for review or comment. This has resulted in at least eight cargoes totaling 500,000 tons of soybeans delayed up to three weeks at Chinese ports," according to Baucus and Grassley.

"The detrimental impact on American farmers – who are now harvesting another bumper soybean crop – is enormous. Due to China's recent actions, our farmers are in danger of losing their traditional ‘window' for sales of $1 billion of soybeans to China – their largest export market," they added.

From Sept. 1-27, 2000, the United States exported 230,000 metric tons of soybeans to China. "This year, as a result of both China's biotech regulations and new quarantine requirements, exports are zero. Lost market share has pushed soybean prices -- already at historic 27 year lows -- even lower," they said.

"We believe that the above stated actions constitute a restraint of trade and if not addressed immediately, will set a poor precedent for China's compliance with its WTO obligations under both the accession agreement and the new round. In the interim, our domestic soybean industry suffers the consequences. Time is of the essence, thereby we respectfully but strongly urge you to address this matter with the Chinese government at the earliest opportunity."