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

Text: Agriculture Secretary Veneman on China, Taiwan in WTO
(Sees more agriculture trade with lowered trade barriers)
U.S. Agriculture Secretary Ann Veneman has welcomed approval for China and Taiwan by the World Trade Organization (WTO) and said that accession offers substantial new markets for U.S. farmers.
"As China and Taiwan reduce their trade barriers and implement their WTO commitments, new export opportunities will emerge for a broad range of U.S. agricultural products, including grains, meats, produce and processed goods," Veneman said in Doha, Qatar, where she is attending the WTO ministerial.
China could add approximately $2,000 million a year to the $1,700 million it buys of U.S. agricultural exports by cutting tariffs by more than half on U.S. priority products, according to a November 10 press release from the U.S. Department of Agriculture. Taiwan could add $500 million to the $2,000 million it buys, the release said.
With WTO entry China also agreed to end import bans, expand trading rights for U.S. firms, and eliminate agricultural export subsidies. Taiwan agreed to open its rice market for the first time and increase access for pork, beef and poultry.
China and Taiwan will officially enter the WTO as the 143rd and 144th members, respectively, on January 1, 2002.
(Note: In the following text, "billion" equals 1,000 million.)
Following is the text of the news release:
(begin text)
VENEMAN SAYS U.S. FARMERS WILL BENEFIT FROM CHINA AND TAIWAN ENTRY INTO WORLD TRADE ORGANIZATION

DOHA, Qatar, Nov. 10, 2001 -- U.S. Secretary of Agriculture Ann M. Veneman today welcomed approval for membership of China and Taiwan by the World Trade Organization (WTO) and said substantially reduced tariffs will help move more U.S. farm products to the region.
"The integration of China and Taiwan into the global trade community offers timely benefits for U.S. agricultural producers, processors, and exporters," Veneman said. "We hope to build on this accomplishment as we continue our work here in Doha to complete the ambitious agenda of this ministerial by launching new global trade negotiations."
Last year, U.S. agricultural exports totaled more than $2 billion to Taiwan and more than $1.7 billion to China. The two markets ranked as the fifth and sixth largest, respectively, for imports of U.S. agricultural products.
"As China and Taiwan reduce their trade barriers and implement their WTO commitments, new export opportunities will emerge for a broad range of U.S. agricultural products, including grains, meats, produce, and processed goods," Veneman said. "We must continue to work hard in ensuring these agreements are fully implemented and comply with WTO rules."
When fully implemented, China's WTO commitments could add approximately $2 billion a year to U.S. agricultural exports. In the 1999 U.S.-China bilateral accession agreement, China agreed to cut tariffs by more than half on priority U.S. agricultural products such as beef (from 45 percent to 10 percent), poultry (from 20 percent to 10 percent), cheese (from 50 percent to 12 percent), oranges (from 40 percent to 12 percent), apples (from 30 percent to 10 percent), wine (from 65 percent to 20 percent), grapes (from 40 percent to 13 percent), to name a few. With WTO entry, China also agreed to end import bans, expand trading rights for U.S. firms, and eliminate agricultural export subsidies. These agreements will allow for greater access of other products such as cotton, oilseeds, grains and corn.
Taiwan's WTO accession could add around $500 million a year to U.S. agricultural exports. Under the U.S.-Taiwan bilateral market access agreement, Taiwan agreed to open its rice market for the first time and to increase access for pork, beef, and poultry. Tariffs on some 300 items of key interest to the United States will be cut an average of 45 percent upon accession.
"We continue to work hard to improve the ability for U.S. farmers to compete in the global marketplace. Clearly, the future strength and prosperity of American agriculture depends on access to global markets," Veneman said. "WTO membership for China and Taiwan will dramatically expand access for U.S. farmers to two major economies that share a growing middle class of consumers eager and able to buy American products."
Veneman, U.S. Trade Representative Robert B. Zoellick, and other U.S. officials are in Doha, Qatar, for the fourth WTO Ministerial Conference that began on Nov. 9 and is scheduled to conclude on Nov. 13.
The entry of China and Taiwan into the rules-based global trading system of the WTO follows 15 years of intense bilateral negotiations and opens the door for U.S. agriculture to China's 1.3 billion consumers. China and Taiwan will officially enter the WTO as the 143rd and 144th members, respectively on January 1, 2002. Taiwan will officially be known as Chinese Taipei in the WTO.
(end text)
(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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