January 6, 2000

CONTACT: NICK GIORDANO (NPPC) - 202-347-3600
SCOTT SHEARER (FARMLAND) - 202-783-5330

COALITION CALLS FOR EARLY VOTE ON NORMAL TRADE RELATIONS STATUS FOR CHINA

The Agriculture Coalition for U.S. - China Trade today called on Congress to pass Normal Trade Relations (NTR) status for China early in 2000, saying the agreement negotiated by U.S. officials to allow China to join the World Trade Organization (WTO) "will create huge opportunities for U.S. agriculture."

A letter signed by 74 Coalition members sent to every lawmaker noted that the tariffs China agreed to for many products are much lower than the corresponding tariffs in countries like Japan and Korea. The letter stated that China would be required to reform its monopoly state purchasing agencies and stop the subsidization of exports.

"The United States will also have recourse to WTO dispute settlement mechanisms should China not live up to any of its obligations, an avenue of recourse we currently do not have," the letter stated. "While the U.S. gains access to its growing market, China does not gain any greater access to the U.S. market under the negotiated agreement, making it a win-win for American agriculture."

While China can become a member of the WTO independent of U.S. consent, in order for American farmers and businesses to take advantage of the concessions contained in the U.S. - China agreement, Congress must vote for permanent NTR.

"The stakes for American farmers could not be higher," said John McNutt, president of the National Pork Producers Council, which co-chairs the Agriculture Coalition for U.S. - China Trade. "Unless Congress passes permanent NTR for China, our farmers will helplessly watch as farmers from France, Canada and other nations take advantage of low tariffs and other substantial concessions China was willing to make to be able to join the WTO. China will become a member of the WTO, the only question is whether American farmers will benefit or not."

"This agreement will provide American farmers with unprecedented access to one-fifth of the world's population, but only upon congressional action to grant permanent normal trade relations," stated H.D. "Harry" Cleberg, President and CEO of Farmland Industries, Inc. "The future economic well-being of American agriculture is closely tied to our success in expanding markets. China's accession to the rules-based WTO is a critical step in expanding our markets and in achieving that success."

The Agriculture Coalition for U.S. - China Trade includes more than 70 agricultural organizations representing agricultural producers, farm and food groups, producers of the tools of agricultural production, trade associations and companies in all 50 states. The Coalition is working to ensure fair market access for U.S. agricultural products in China.


Copyright 2000 by the US-China Business Council
All rights reserved.

Last Updated: 12-Jan-00