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Reuters China farm minister says GMO rules won't disrupt trade

Date: 11-Mar-03
Country: CHINA
Author: Ben Blanchard

China will also complete a series of field tests on transgenic products developed by foreign biotech companies, such as Monsanto Co (MON.N), by September, Du said.

"Concerns over GMO safety will not disrupt world trade," Du told a news conference on the sidelines of an annual two-week meeting of China's parliament, the National People's Congress.

"Import controls are not aimed at any one country or any one product," Du said.

"We can finish the field tests in the timeframe which we have stipulated," said Du, implying the tests would be done by September 20, 2003, when China's temporary GMO measure expires.

Timely completion of such tests is crucial for companies like Monsanto, whose Roundup Ready bioengineered soybeans are grown in some countries that China imports the oilseed from.

Once China's temporary measure expires, exporters will have to produce certified papers from companies like Monsanto to gain permission to sell the company's soybeans to the mainland.

Monsanto officials could not be reached for comment.

Du's comments on the smooth flow of trade were expected to reassure traders, who had not expected any further disruptions of soybeans trade after the government gave approval to Brazilian soybean imports in January.

Brazilian soybeans initially encountered problems because the South American government did not admit the country grows GMO crops, although it is generally known that 30 percent of its crop is GMO.

FOOD SAFETY WORRIES

China, the world's top buyer of soybeans, implemented rules on imports of genetically modified organisms in June 2001 that hampered trade with top soybean producers such as the United States, Brazil and Argentina.

The rules required soybean suppliers to go through a time-consuming process to apply for import permits.

The government then implemented the temporary measure that mandated a simpler procedure. It was originally due to expire on December 20, 2002, but was extended to September 20, 2003, ensuring that trade would not be disrupted.

According to custom figures, China imported 11.32 million tonnes of soybeans in 2002 to feed the demand of its crushing industry.

Recent soybean trade has been normal. Some traders said China had bought more soybeans than it could digest and may have to cancel some South American soybean cargoes in coming months.

Du said China's concern about GMO products was motivated by safety worries.

"I can happily tell you food safety is guaranteed in China, with 95 percent of food meeting safety standards," he said.

Last year, 138 people died from food poisoning in China, a 5.5 percent year on year fall.

Unease about the quality of Chinese food has affected exports. The European Union maintains a ban on imports of Chinese poultry meat, rabbit meat and honey because of health fears.

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