EU ready to lift restrictions on imports

Chinese producers of goods of animal origin may breathe a sigh of relief as the European Union is on the verge of lifting import restrictions on their goods. For the producers this is a piece of extremely good news.

The move comes at a time when Chinese shrimps are subject to preliminary anti-dumping duties as high as 112.81 per cent in the United States, and they will now have a market.

However, industrial experts caution that self-discipline and strict quality checks are needed for these companies to secure a stable and profitable EU market.

Restrictions lift
In January 2002, shortly after China joined the World Trade Organization, the EU suspended the imports of products of animal origin from China for food safety reasons, particularly because of the presence of residues of veterinary medicines in food and animal feed from China.

Since then, the EU and China have launched four work meetings on the lifting of the imports.

Restrictions already eliminated allow imports of surimi, casings, sea-caught fish and crayfish.

EU member states meeting in the Standing Committee on the Food Chain and Animal Health on July 15 approved authorization of imports from China of shrimps, farmed fish, honey, royal jelly, rabbit meat and a number of other products of animal origin.

The lifting comes because the EU believes China has made significant improvements in meeting veterinary standards.

The decision will be formalized by the European Commission in the near future and will take effect shortly afterwards.

China will undertake to test all consignments of exports and issue a certificate only for consignments that conform with EU requirements.

Restrictions on poultry-meat still remain. The issue is still under discussion between China and the EU.

The EU has never authorized imports of pork, beef and dairy products from China.

Good news
Chinese firms are happy about the resumption of exports to the 25-nation bloc, currently China's largest trading partner.

They are now getting prepared to re-enter the big market, expressing confidence in standing out.

"We welcome the EU move," said Li Xinmin, an official at China National Native Produce and Animal By-Products Import and Export Corp (China Tuhsu).

He said his company suffered from the EU import limit in 2002, when China Tuhsu's mainstay businesses were put on an EU blacklist.

The company stopped exportation of honey to the EU after the export suspension, which caused big losses.

Now China Tuhsu is carrying out preparatory work to re-enter the EU market.

For shrimp traders, the import relaxation comes after recent US sanctions and had been described as wonderful.

"It is timely rain," said Fan Guofeng, general manager of Zhejiang-based Xifeng Aquatic Produce Company, using a Chinese phrase to describe a helpful move that happens at the right time.

He said he is confident that his company can now meet the EU requirements, and is preparing for the first batch of exports, set for mid-August.

"The first batch will be relatively small," Fan said. He plans to increase exports from September.

He also said that his company would export a total of 800 to 1,000 tons of shrimps to the EU in the remaining months of the year.

That will approach the export capacity before the suspension in early 2002. The company exported 3,000 tons annually at that time.

Chinese shrimp exporters are expecting to offset their losses due to the US anti-dumping rule by re-entering the EU market.

Firms also expressed worries about their business in the EU.

"We are outside the EU market for almost two years," Zhou said. "We are not familiar with the situation there."

More efforts
Local firms should not be overoptimistic about the import permissions, said Cao Xumin, president of China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal By-Products (CFNA).

They must guarantee goods quality and trace every link during production, he said.

Officials from the Ministry of Agriculture also cautioned exporters should not blindly pursue quantity and market share, which might lead to unhealthy competition and incur anti-dumping charges.

Luo Mengchuan, president of China's Bee Products Association, said bee-keepers should record insects' condition.

And only selected firms would be allowed to export to the EU, Luo added.

Source: China Daily



People's Daily Online --- http://english.people.com.cn/