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Food, drug import safety pacts aim to ease trade tensions

Tom Miller

The mainland and the United States will sign two agreements on improving food and drug import safety today in a move to ease trade tensions between the two countries on the eve of the third bilateral strategic economic dialogue.

The agreements were a co-ordinated response by both governments to protect US consumers and improve the image of Chinese manufacturers after exports of contaminated foods, defective products and toxic toys damaged consumer confidence this year, US Health and Human Services Secretary Michael Leavitt said yesterday.

Mr Leavitt said the agreements, which would take effect immediately, should be seen as part of a wider effort by the US to respond to the safety challenges presented by global trade rather than as policy specifically directed at the mainland.

'This is not about the US and China. We are inventing processes that reflect a maturing in the global marketplace,' he said in Beijing.

Although the agreements would cover only a limited set of specified products, they could be expanded to include other products, he said.

One agreement covers food and fees while the other covers drugs and medical equipment. A separate agreement designed to enhance the safety of children's toys was signed in the autumn.

The move comes a month after the US Department of Health and Human Services unveiled a strategy for improving the quality of US imports that would boost the number of American safety inspectors working on the mainland.

Under the Import Safety Action Plan, mainland exporters would be encouraged to undergo voluntary certification by US government accredited agencies, while a team of American inspectors would work with both Beijing and mainland manufacturers to help ensure compliance with US safety standards.

Likening the existing inspection system to 'finding a needle in a haystack', Mr Leavitt said voluntary certification would drive up manufacturing standards by guaranteeing certified exporters easier access to the US market. Last year, the US imported nearly US$2 trillion of goods from more than 825,000 importers around the world.

Lester Ross, a managing partner in US law firm WilmerHale's Beijing office, said the agreements would make a difference. 'There have been substantial shortcomings on both sides in the past, but improvements in technical co-operation and greater acceptance of each side's procedures should facilitate trade and reduce frictions,' he said.

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