http://www.planetark.org/dailynewsstory.cfm/newsid/15174/story.htm
Planet Ark :
Beijing seen tough on GMOs, particularly on soyoil

SINGAPORE: March 25, 2002

SINGAPORE - China is unlikely to allow free imports of soybeans in 
the near future, although it has begun accepting applications for 
temporary import permits for bio-engineered oilseeds, traders said 
last week.

They said Chinese authorities were particularly strict on imports of 
products made from genetically modified organisms (GMOs), such as 
soybean oil, and this might raise the country's appetite for non-GM 
products such as palm oil.

"We have a big problem here," said a trader at an international house 
based in Beijing.

"It's pretty tough, especially on the products. We cannot lodge any 
soybean oil applications...Probably this will increased demand for 
palm oil."

Traders said Chinese authorities last week began accepting the first 
few applications for temporary safety certificates required for 
imports of GM-soybeans.

Beijing is to respond within 30 days to each of the applications for 
temporary certificates. It was unclear whether the applicants could 
get such certificates earlier.

But China's supplementary rules published this week said it was 
necessary to acquire import permits of GMO raw materials, such as 
soybeans and rapeseed, before applying for import permits of GMO 
processed products, such as soy oil or rapeseed oil.

LIMITS ON QUANTITIES

Some traders said Chinese authorities had also asked them to limit 
their applications to imports of only three cargoes, though these 
could come from three major origins, including the United States, 
Argentina and Brazil.

Traders said such restrictions on imports of GMO products meant China 
might not import any soyoil this year, dashing hopes that the country 
might swallow up to 2.518 million tonnes of the vegetable oil from 
the international market.

Though Beijing had started handing over low-tariff-rate import quotas 
(TRQs) for vegetable oils, they said, the GMO rules would leave 
hardly any window to use up the 2002 TRQs. It may take up to 270 days 
to get safety certificates for soy imports.

Meanwhile, traders said, only one soy cargo, if at all, was expected 
to arrive in China over the next few weeks.

Even if Beijing were quick in issuing temporary import permits, it 
will not be before late May or June that the next soy ships would 
dock in the country, they said.

However, China is unlikely to suffer from any shortage in soybeans 
until mid or late May due to heavy arrivals of soy cargoes ahead of 
March 20, when the GMO rules took effect.

They were sceptical of customs data released last week that put 
February soy imports at a mere 473,000 tonnes, compared with their 
estimates of more than one million tonnes.

They ascribed the discrepancy to a possible delay in processing the 
papers. They estimated a total of 2.4 million tonnes left the United 
States for China during the first two months of this year. Another 
700,000-800,000 tonnes was landing in March. (Additional reporting 
from Lee Chyen Yee in Shanghai).

Story by Nao Nakanishi

REUTERS NEWS SERVICE


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