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October 6, 2000

PNTR approval opens
trade doors with China

By Lana Robinson
Field Editor

Texas Farm Bureau President Donald Patman praised the market-opening gains for American farmers signaled by last month's U.S. Senate approval of Permanent Normal Trade Relations with China.

"It's absolutely wonderful news for American farmers and ranchers," said Patman. "We've worked so hard on this particular issue."

The vote brought to an end the 20-year-old annual ritual of reviewing China's human rights practices and renewing NTR for a single year. The agreement caps a Clinton administration trade record that includes the 1993 passage of the North American Free Trade Agreement and liberalization of trade with some Caribbean and African nations earlier this year.

FB members given credit

"Our efforts were also evident in the U.S House, where 25 of the 30 members of the Texas delegation supported the measure," Patman continued. "President Clinton also worked real hard for passage, and there's no doubt he will sign it."

PNTR passage was also praised by American Farm Bureau President Bob Stallman.

"The increased farm exports that will result from this agreement, and China's membership in the World Trade Organization, will help boost our sagging farm economy and benefit Chinese consumers," Stallman said. " China's agreement to eliminate trade barriers and open their markets to U.S. farm goods gives producers yet another weapon to fight the low commodity prices we've been struggling to overcome."

With the new climate of open markets into China, U.S. agricultural trade is expected to increase by as much as $2 billion annually by 2005. For American farmers and ranchers, trade is an essential part of their livelihoods. Currently, exports account for 30 percent of U.S. farm cash receipts and nearly 40 percent of all agricultural production is exported.

Combest, Stenholm crow

U.S. House Agriculture Committee Chairman Larry Combest (R-TX) and Ranking Minority Member Charlie Stenholm (D-TX), who led the PNTR effort in the House, on Sept. 19, released a joint statement:

"Today's firm backing from Congress signals that American farmers and ranchers will at last break through China's Great Wall of trade barriers. The Senate vote completes the work to normalize the trading climate between China and the United States, where China opens its doors and makes the concessions to become a recognized trading partner in the modern world."

Already, China has agreed that as a condition of its membership in the World Trade Organization, it would:

• Cut overall agricultural tariffs against U.S. priority products in half (including beef, grapes, wine, cheese, poultry, and pork) from 31.5 percent to 14.5 percent by 2004.

• Establish a tariff-rate quota system for imports of agricultural bulk commodities (such as wheat, corn, cotton, barley, and rice).

• For the first time, permit private trade of U.S. agricultural products inside China.

• Eliminate unscientifically based restrictions against American crops and livestock.

• End its agricultural export subsidies and reduce its own domestic subsidies.