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CHINA, USA, TRADE, problem solved, pass the poison

flounder

Well-known member
China raises its own import issues

By Steven R. Weisman Published: December 6, 2007


BEIJING: After pressing China for a new effort to police the safety of its food and other exports, the Bush administration is finding Chinese leaders pushing back with demands for commitments from the United States to insure the safety of its food and goods, administration officials say.

"When we raise a food safety issue, they claim they have food safety issues with us," a Bush administration trade official said Wednesday, speaking anonymously, as is customary when negotiations are under way. "They try to raise an equivalent number of issues, but their concerns are not as concrete as ours."

Both Chinese and U.S. concerns over product safety deepened this year with the disclosure of tainted toys and food from China. But U.S. officials say they are now negotiating accords to be signed next week aimed at improving the atmosphere with new understandings.

The accords are to be part of the third round of the semiannual "strategic economic dialogue" started a year ago by the Treasury secretary, Henry Paulson Jr. Though the dialogue is focused on broad economic issues, officials said the food and product safety issues had become the most urgent priority in recent months.

"What we need to do with China is deal with the most important issues of concern to Americans," Paulson said in an interview Wednesday as he prepared to travel to China with other cabinet members. "Right now, product and food safety is the No. 1 issue."

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The discussions have apparently not been easy. As concern about the safety of Chinese products rose this year, U.S. negotiators said they found that the Chinese raised concerns of their own and began imposing new safety restrictions on food and other products, possibly in retaliation over the furor in the United States.

For example, China proposed extensive new inspections last summer for U.S. medical equipment like patient monitors and surgical implants but did not impose the same standards on domestic equivalents. The Bush administration cried foul and hopes to get the proposal revised next week.

In addition, U.S. officials say the Chinese imposed "extreme requirements" for inspection of U.S. beef for mad cow disease, of poultry for possible salmonella traces and of pork for chemical additives. Chuck Connor, the acting agriculture secretary, is trying to negotiate a more flexible system for U.S. food products.

Michael Leavitt, secretary of health and human services, who is head of an administration review of U.S. product safety standards, said in a speech this week that the agreements would cover food, animal feed, medical devices and drugs to ensure that imports meet "American standards" of quality and safety.

An "action plan" on import safety was started by President George W. Bush last month calling for greater efforts to keep tainted goods from being shipped to the United States, improved certification of imports and training to help other countries build their safety inspection capabilities.

But details implementing these goals with the Chinese have not been worked out, department spokesmen say. It is not clear, for instance, what sort of on-site inspections or training the Chinese might permit or whether China is prepared to ease its safety standards on imports from the United States.

From the U.S. side, the strategic dialogue involves several cabinet agencies and is aimed at getting greater access for U.S. goods, services and investments, as well as getting the Chinese to take steps to let the value of its currency appreciate, which would make U.S. imports less expensive. In return, China got a forum to air grievances with Washington.

Many people in the Bush administration acknowledge that the dialogue's results, like greater access by Wall Street banks and investment firms, have been limited. China's currency has appreciated about 12 percent since 2005, though it has fallen in relation to the euro, stirring anger in the European Union.

Many in Washington, especially in Congress, view the latest talks as a test for Paulson, who has warned lawmakers to refrain from imposing trade sanctions on China while he tries to negotiate disputes. But since the dialogue began, disputes with China have actually multiplied. The Commerce Department and the U.S. Trade Representative's Office have taken China to court at the World Trade Organization, charging it with a failure to enforce laws against piracy and counterfeiting of goods and trademarks.

Last month, the Chinese settled a separate dispute before the World Trade Organization and agreed to terminate a dozen different kinds of subsidies and tax rebates that the United States charged were unfairly promoting Chinese exports and discouraging imports.


http://www.iht.com/articles/2007/12/06/business/trade.php



(Page 2 of 2)

At the same time, U.S. trade officials complain that China is using regulations and industry standards to prevent U.S. products from entering its market. There is a separate dispute over the U.S. move to impose duties on several Chinese products on the ground that they benefit from improper subsidies.

Two sets of talks occur next week. Paulson is to lead the strategic dialogue with several cabinet members, including the commerce secretary, Carlos Gutierrez, and the U.S. trade representative, Susan Schwab.

But before the dialogue sessions, aides to Gutierrez and Schwab are to discuss specific market access issues. Officials said these include U.S. objections to proposed standards and requirements that would restrict access for U.S. cellphones and telecommunications services and the expansion of operations of express delivery services like FedEx and DHL.

China is irritated that in many of these areas, the United States has threatened or imposed duties or taken China to court at the World Trade Organization. But Gutierrez and Schwab say their approach of litigating disputes and negotiating them at the same time has produced results.

Paulson said the meetings next week would be a test for Chinese leaders newly installed at the Communist Party's National Congress in October.

On the issue of overhauling China's capital markets to remove curbs on foreign investors and joint ventures, he said "there's been progress with almost every sector of the financial services industry, but it's been incremental progress." He added that he recognized that rising political criticism of China in the United States, coupled with leadership changes in China and rising protectionist sentiment there, made the dialogue "more important and more difficult" but that it was important to continue the dialogue under a new president in 2009.

"I frankly can't conceive of anything that would be a better substitute for having two major global economies having a forum where we can make progress on the most important economic issues," Paulson said. "One of my objectives is that when this administration leaves office, the next administration will continue it."

http://www.iht.com/articles/2007/12/06/business/trade.php?page=2



>>>BEIJING: After pressing China for a new effort to police the safety of its food and other exports, the Bush administration is finding Chinese leaders pushing back with demands for commitments from the United States to insure the safety of its food and goods, administration officials say.<<<


>>>In addition, U.S. officials say the Chinese imposed "extreme requirements" for inspection of U.S. beef for mad cow disease, of poultry for possible salmonella traces and of pork for chemical additives. Chuck Connor, the acting agriculture secretary, is trying to negotiate a more flexible system for U.S. food products.<<<


>>>Both Chinese and U.S. concerns over product safety deepened this year with the disclosure of tainted toys and food from China. But U.S. officials say they are now negotiating accords to be signed next week aimed at improving the atmosphere with new understandings.<<<


holy mad cow, i can see the writing on the wall, we will take some of your tainted [email protected], they take ours. problems solved $$$


PASS THE POISON. ...tss


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