U.S. Dept. of State - IIP: The United States and China

Text: Galvin on China's New Rules for U.S. Citrus, Wheat, Meat
(March 23 Foreign Agricultural Service news release)
The Chinese Government issued new rules governing the importation of U.S. wheat, meat, and citrus on March 23. Timothy Galvin, Administrator of the U.S. Department of Agriculture's (USDA) Foreign Agricultural Service, explained the details in a news release the same day.
For wheat, China has loosened certain restrictions on grain quality and agreed to a nominal 1-percent tariff on all grains imported within a tariff-rate quota.
For meat, China agreed to accept all beef, pork, and poultry from the United States certified as wholesome by USDA.
For citrus, Florida, Texas, Arizona, and California can now export under certain quarantine conditions.
"This action was a necessary final step to implement the Agreement on U.S.-China Agricultural Cooperation signed by our two nations last April," said Galvin. "It is welcomed news for our exporters, assuring them that their products are now free to enter China. It also indicates that China is following through on its international commitments, an important factor as the U.S. Congress considers granting permanent Normal Trade Relations to China."
Following is the text of the FAS press release:
(begin text)

U.S. Department of Agriculture
Foreign Agricultural Service
CHINA ISSUES NEW RULES TO ACCEPT U.S. CITRUS, WHEAT, AND MEAT

WASHINGTON, March 23, 2000 -- Timothy J. Galvin, Administrator of the U.S. Department of Agriculture's (USDA) Foreign Agricultural Service, today explained details of the new rules the Chinese Government issued that were announced yesterday by Agriculture Secretary Dan Glickman and U.S. Trade Representative Charlene Barshefsky. The new rules govern the importation of U.S. citrus, wheat, and meat. China's Ministry of Agriculture, Ministry of Foreign Trade and Economic Cooperation, and State Administration for Entry-Exit Inspection Quarantine of the PRC issued the attached joint public notices changing entry requirements for each of these U.S. agricultural products.
"This action was a necessary final step to implement the Agreement on U.S.-China Agricultural Cooperation signed by our two nations last April," said Galvin. "It is welcomed news for our exporters, assuring them that their products are now free to enter China. It also indicates that China is following through on its international commitments, an important factor as the U.S. Congress considers granting permanent Normal Trade Relations to China."
For wheat, the agreement replaces China's previous zero tolerance policy for TCK with new guidelines permitting up to 30,000 TCK spores per 50 grams sampled. It also means that China is now willing to accept imports of wheat and other grains from the Pacific Northwest. "These actions make China's grain policies significantly more free-trade oriented, opening up real long-term opportunities for U.S. wheat exporters," said Galvin.
In addition, when China accedes to the World Trade Organization (WTO), it agreed to a nominal 1-percent tariff on all grains imported within a tariff-rate quota (TRQ). The TRQ on wheat will initially be set at 7.3 million metric tons and grow to 9.6 million metric tons by 2004. In 1999, China imported less than 1 million metric tons of wheat from all countries.
For meat, China agreed to accept all beef, pork, and poultry from the United States certified as wholesome by USDA. "China currently imports very little beef, but income growth and rising demand from urban centers are expected to result in significantly increased demand for imports," said Galvin. "China also consumes far more pork than any other country, but up until this point its trade barriers effectively closed its market to imports. In addition, China already is the second leading market for U.S. poultry exports."
When China joins the WTO, it will lower its tariff from 45 percent to 12 percent on frozen beef cuts, and from 45 percent to 25 percent on chilled beef, by 2004. It will also cut its tariffs on frozen pork cuts and beef and pork offal from 20 percent to 12 percent. For frozen poultry cuts, China will cut its tariff rate in half (from 20 percent to 10 percent) by 2004. There will be no quantity limits at these tariff levels.
For citrus, Florida, Texas, Arizona, and California can now export under certain quarantine conditions. When it joins the WTO, China will reduce tariffs on oranges, grapefruit, and lemons from 40 percent to 12 percent by 2004.
PUBLIC NOTICE No. 114
MINISTRY OF AGRICULTURE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION STATE ADMINISTRATION FOR ENTRY-EXIT INSPECTION
QUARANTINE OF PRC
March 20, 2000
According to the "Entry-Exit Animal Plant Quarantine Law of the PRC" and its implementation protocols, and related regulations of the "Sino-US Agricultural Cooperation Agreement" signed by the Governments of China and the United States, and on the premise of ensuring that American wheat will not pose any threat to wheat production in China, effective today, wheat of all varieties from anywhere in the United States, will be allowed to be imported. Relevant requirements are as follows:
Before wheat shipped from the United States to China is exported, official American inspection quarantine agencies must conduct the inspection quarantine and issue an inspection quarantine certificate.
If wheat shipped to China from the United States contains TCK, the number of the spores must not exceed the tolerance stipulated in the "Sino-US Agricultural Cooperation Agreement".
During the transitional period, the Chinese and American sides will engage in cooperative research on the allowable tolerance for TCK spores. When the results are achieved, in the future, the allowable numbers of spores will be based on the results of this cooperative research.
PUBLIC NOTICE No. 115
MINISTRY OF AGRICULTURE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION STATE ADMINISTRATION FOR ENTRY-EXIT INSPECTION
QUARANTINE OF PRC
March 20, 2000
According to the "Entry-Exit Animal Plant Quarantine Law of the PRC" and its implementation protocols, and related regulations of the "Sino-US Agricultural Cooperation Agreement" signed by the Governments of China and the United States, on the basis of a pest risk assessment, our experts have conducted a pre-inspection regarding citrus to be imported from Florida, Texas, Arizona and California in the United States. We consider that the pre-inspection results meet the relevant regulations.
Therefore, effective this day, we agree that citrus from the orchards, shippers, packing plants, and warehouses designated jointly by the China State Administration for Entry-Exit Inspection Quarantine and the United States Department of Agriculture, under certain quarantine conditions, can be shipped to China from Texas, Arizona, Florida (currently limited to the following seven counties, namely Indian River, St. Lucie, Martin, Palm Beach, Collier, Hendry, Lee) and California (currently restricted to six counties, namely Fresno, Tulare, Kern, Madera, Ventura, Monterey).
Regarding the specific import quarantine requirements, and the designated list of orchards, shippers, packaging plants and warehouses, please consult the State Administration for Entry-Exit Inspection Quarantine at (http://www.ciq.gov.ccn).
PUBLIC NOTICE No. 116
MINISTRY OF AGRICULTURE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION STATE ADMINISTRATION FOR ENTRY-EXIT INSPECTION
QUARANTINE OF PRC March 20, 2000
According to the "Entry-Exit Animal Plant Quarantine Law of the PRC" and its implementation protocols, the "Food Product Sanitation Law of the PRC," and related regulations of the "Sino-US Agricultural Cooperation Agreement" signed by the Governments of China and the United States, effective from this date, China allows the importation of meat products produced by slaughter and processing plants approved by the Food Safety and Inspection Service of the United States Department of Agriculture. The Food Safety and Inspection Service of USDA must conduct the inspection quarantine of such meat for export, and issue sanitary certificates to certify that exported meats are healthy and safe.
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(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: usinfo.state.gov)

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