US soybean industry seeks break in China GMO rules
Date: 17-Aug-01
Country: USA
Author: Richard Cowan
On June 6, China put into effect rules governing genetically modified organisms. But the details on how the regulations are to be implemented still have not been laid out by China.
Asian commodity traders are speculating it could be months before those details are forthcoming from China, possibly jeopardizing U.S. exports of the soybean crop that will soon be marketed.
"We would like the application (of the new rules) delayed until the details are announced. And then, we need a sufficient time period to make the necessary applications," said Stephen Censky, chief executive officer of the St. Louis-based American Soybean Association.
Censky explained that it will take time for U.S. exporters to apply for shipment of GMO soybeans, have those applications reviewed and adhere to whatever other bureaucratic requirements China imposes.
The U.S. Department of Agriculture estimates that 68 percent of domestic soybeans are genetically modified.
China's new rules require safety certificates stating GMO products are not harmful to humans, animals or the environment. Imported GMO foods will also require special labeling.
During the first half of this year, China imported nearly 6 million tonnes of soybeans, with about three-quarters of that being supplied by the United States.
U.S. MAJOR SOYBEAN SUPPLIER
According to the latest USDA estimates, China will import from all sources 13.2 million tonnes of soybeans in 2000/01 and 14.5 million tonnes in 2001/02 (Sept. 1-Aug. 31).
Asked in a telephone interview this week whether the current confusion over China's new GMO rules has had an impact on soybean trade, Censky responded, "Can we point to specific shipments being blocked? We can't."
Censky added that now is a seasonally "slow time in the shipping period" but there are concerns over U.S. sales that normally would be expected to accelerate in September and October.
Another U.S. agriculture industry source, who asked not to be identified, said new sales "have very much slowed up. The trade doesn't know what the rules are. I'd be surprised if anyone is making new sales" of soybeans to China.
Various USDA officials would not comment on the likely impact of China's new GMO rules and the uncertainties of the implementing details.
A USDA spokesman said the agency has "done no analysis, primarily because the Chinese have not released the regulations, so we're not sure what all is involved."
Censky insisted that if China's GMO regulations are "applied in a transparent and scientific manner, they should have no" negative impact on U.S. soybean sales.
He added that with China on the verge of becoming a member of the World Trade Organization, it has an "obligation" to play by internationally-accepted sanitary rules for food.
Censky said his organization has had daily conversations with officials at USDA and the U.S. Trade Representative's office to urge them to convey the industry's "concerns" to China.
He also said that if China's GMO regulations are not fleshed out by October, it would be "appropriate" for President George W. Bush to raise concerns then with Chinese leaders during a visit to that country.