United States exports of farm products to China are expected to maintain a strong growth as the mainland continues to lower import tariffs and the rising incomes of Chinese people make such goods more affordable, a US agriculture official said in Shanghai Friday.
"China, especially Shanghai, has one of the best opportunities for fast growth for US farm product exports," said Ross Kreamer, director of the agricultural trade office of the US Consulate General in Shanghai.
"People's incomes are rising and tariffs are declining, so more people can afford US farm goods like fruits and vegetables," said Kreamer.
He made the remarks at the American Food Festival, which opened yesterday at 21 Carrefour stores in 11 Chinese cities. The festival, the fifth of its kind in China, features more than 400 varieties of US farm goods, of which about half made their debut in the Chinese market.
Though some foreign government officials have characterized China's implementation of its tariff-cutting promise under the WTO commitments in the agriculture sector as "slow and reluctant," the figures painted another picture.
The US trade office said exports of American farm products to China more than doubled in the first seven months of this year, thanks to lower tariffs and a booming demand.
China bought US$2.2 billion worth of US farm goods during the period, a jump of 138.8 percent from a year ago, according to the US Bureau of Census Trade Data.
Exports of bulk agriculture goods, such as rice and soybeans, rose 226.1 percent to reach US$1.5 billion in the period.
Exports of intermediate agricultural goods, like soybean oil and wheat flour, rose 54.6 percent year-on-year to reach US$509 million during January to July.
Year-on-year, sales of consumer farm goods like almonds, fresh fruits and vegetables increased 54.8 percent to reach US$232 million in the first seven months.
"The exports of US almonds keep rising as the tariff dropped to 14 percent this year from 18 percent last year," said Zhou Jing with the Shanghai representative office of the Almond Board of California, one of the 15 US farm goods export promotion offices in town.
"Local customers are less price-sensitive nowadays as they earn more than before," Zhou noted. Next year, the tariff on almonds is expected to drop to 10 percent, she said. Zhou didn't predict import growth in 2004.
Currently, China is the fifth-largest buyer of US farm goods while it is the fourth-biggest farm goods supplier in the US.
Zhou Dunren, a professor at the American Studies Center, Fudan University, however said that Chinese farm goods are facing a grim challenge with the increasing imports of foreign products.
"Most of China's farm goods are grown without a unified standard, which is a must for exports to some developed countries. They are vulnerable competing against goods in developed countries," according to Zhou.
(eastday.com September 13, 2003)
