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Farm product exports to increase 12% this year

By Jiang Wei (China Daily)
Updated: 2006-12-14 08:51

China's agricultural product exports are expected to grow about 12 per cent to hit US$30 billion this year despite overseas technical barriers and cost increases, according to a senior official with theMinistry of Commerce.

The remarks were made by Lu Jianhua, director of the ministry's department of foreign trade, who based his prediction on the fact that the country's agricultural product exports rose 12.7 per centyear-on-yearin the first 10 months to US$24.56 billion. Last year, China exported US$27.18 billion of agricultural products.

"Sustained and quick growth is not easy for the country as it sees stricter overseas technical barriers and cost increases," Lu said.

According to statistics from the ministry, Japan, the European Union and the United States remain the top export markets for Chinese farm products.

Affected by Japan's new inspection rules on food imports, China's agriculture product exports to the country grew only 3 per cent year-on-year in the first 10 months of this year. But Japan still claimed over one quarter of China's total agricultural product exports.

Farm product exports to the European Union and the United States rose by 22.6 per cent and 33.9 per cent in this period from a year ago.

Lu attributed the growth to the government's policies to promote farm product exports and moves to help exporters overcome overseas barriers.

China has recently encountered more and more overseas trade barriers besides traditional trade remedy investigations, such asanti-dumpingand safeguard measures.

Some countries, in particular developed ones with advanced technology, intended to restrict China's technological exports.

Since China joined the World Trade Organization in 2001, China's farm products have encountered 15 trade remedy investigations initiated by 11 countries and regions, involving a total volume of US$500 million.

In order to help more Chinese farm products tap overseas markets the ministry has set up a supervision regime to oversee export markets. Some policy banks provide farm product exporters services to address their financing difficulties, and industrial organizations organize training for farmers and export companies to help them overcome technical barriers abroad.

Lu predicts the growth rate of China's farm product exports will slow down in the coming year as a result of expanding global trade protectionism and increases in production costs.

Farm exporters and produce companies should prepare themselves for risks in developed countries, he said.For example, since Japan has imposed stricter rules on food imports, over 200 inspection items are to be implemented in the next year.

Lu is optimistic about the propects offered by some emerging markets, such as the Association of Southeast Asian Nations (ASEAN), the Middle East and Russia.

"Farm product trade (between China and the ASEAN) will further expand as the progress of the free trade agreement between the two sides accelerates," he said.

(China Daily 12/14/2006 page10)