SECRETARY VENEMAN AND CHINESE AGRICULTURE MINISTER ADDRESS TRADE CONCERNS, AGREE TO FURTHER COOPERATION

WASHINGTON, Aug. 25, 2003 – Agriculture Secretary Ann M. Veneman today welcomed China’s Minister of Agriculture Du Qinglin to the United States, the first visit by a Chinese Agriculture Minister in over 10 years. The two held wide-ranging discussions on trade issues and concluded their talks with the signing of a Memorandum of Understanding (MOU) promoting continued bilateral cooperation in scientific research and agricultural trade between the United States and China.

“We are pleased to have had the opportunity for frank discussions on matters of concern to both the U.S. and China’s agricultural sectors,” said Veneman. “Since China joined the WTO in 2001, it has become our fifth largest market for agricultural exports. However, we believe China has not fully complied with its commitments, and we urge it to do so.”

Veneman and Du discussed U.S. soybean sales to China and the recent disruptions due to unjustified phytosanitary restrictions. China is the largest export destination for U.S. soybeans, and sales have surpassed $1.7 billion thus far in the year. Veneman urged the Chinese officials to immediately drop the unwarranted restrictions so that normal trade may resume.

Veneman and Du also exchanged views on the ongoing WTO agricultural negotiations, and reviewed progress on addressing trade opportunities that will result once phytosanitary matters are resolved.

“Both of our nations’ producers and ranchers have much to gain if WTO members succeed in agreeing on a framework for trade liberalization. We look forward to working with China at the WTO ministerial meeting in Cancun, Mexico, next month to achieve this goal. Additionally, we offer substantial market opportunities to each other if progress can be made on phytosanitary and other technical barriers,” Veneman said. “Through the MOU, we have established a framework for a greatly expanded program of cooperation and partnership in some critically important areas for agriculture, such as biotechnology.”

The MOU establishes a Joint Committee on Cooperation in Agriculture to develop and guide future collaboration between the U.S. Department of Agriculture and the Chinese Ministry of Agriculture. The committee will oversee existing agricultural working groups and encourage greater involvement of other U.S. and Chinese agencies. The MOU also establishes a high-level biotechnology joint working group.

The document outlines efforts relating to research, trade and trade capacity-building activities aimed at strengthening scientific cooperation and trade relations between USDA and the Chinese government. The MOU focuses on areas such as agricultural biotechnology, crop research, food processing, and marketing and scientific issues relating to international agricultural agreements.

In July 2002, Veneman met with Chinese officials in Beijing to discuss international trade issues and a framework for developing bilateral cooperation in agriculture. Since 1978, cooperation between USDA and China has facilitated the exchange of over 1,400 American and Chinese agricultural scientists and officials, enhanced agribusiness and trade linkages, supported research for food security and promoted agricultural education and development. A copy of the MOU is available on the Internet at http://www.fas.usda.gov/icd/rsed/china/0803mou.htm.

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