Dear Mr. President:
We are writing to express our concern about the severe market access difficulties whichcontinue to face United States agricultural exports. We are particularly concerned about the impactwhich China’s ongoing efforts to adopt new biotechnology product approval and food labelingregulations is having on our ability to export to this potentially large market.
U.S. soybean exporters have already lost an estimated $240 million worth of sales to Chinadue to the uncertainty caused by the Chinese Ministry of Agriculture’s attempt to imposescientifically questionable regulations on U.S. grain exports earlier this year. Without your timelyintervention and conclusion of an interim agreement with China, losses would have been muchhigher.
Since conclusion of the interim agreement, the Chinese government, through the Ministry ofHealth and the Ministry of Agriculture, has issued additional biotech approval and labelingregulations which again threaten to impede U.S. agriculture exports to China. We have a numberof concerns with these new requirements and regulations and question whether they are compatiblewith China’s commitments under the World Trade Organization and certainly our bilateralagreement with respect to agriculture.
For example, the new Ministry of Health regulations, which are to take effect on July 1, 2002,still have not been notified to the WTO as required. Further, there has been insufficient time for U.S.exporters to seek clarification of the numerous ambiguities inherent in the regulations. Finally, theChinese government has not provided any guidance as to how U.S. exporters are to comply with thenew regulations.
We also are concerned that the new Ministry of Agriculture regulations are also beingimplemented in an unrealistic manner. For example, Ministry of Agriculture rules now require fieldtesting for each commodity as part of the data requirements necessary for U.S. exporters which mustbe submitted before Dec. 20, 2002, to receive the required safety approval to export to China.However, Chinese authorities are limiting the ability of U.S. exporters to import the seeds neededto complete the required field testing, clearly inhibiting their ability to complete the tests and gatherthe data needed to comply with the Dec. 20, 2002 deadline.
Mr. President, U.S. exports of soybeans, corn, wheat, and other agricultural products, whichwere granted improved market access by China when China entered the World Trade Organization,continue to be threatened by these new regulations. Without quick resolution of these problems, U.S.agriculture producers and food manufacturers will be severely harmed.
Accordingly, we urge you to bring this matter to the attention of the Chinese government assoon as possible and empha in the strongest possible terms how critically important it is thatthese new biotech regulations not unjustly impede U.S. agriculture exports.
We will continue to work with you to ensure proper monitoring and enforcement of China’sWTO obligations and stand ready to assist you in taking the necessary steps to ensure compliance.
Sincerely,
Chuck Grassley
Max Baucus
Richard Lugar
Tom Harkin
