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Visiting US Trade Representative Robert Zoellick has complemented China on its implementation of World Trade Organisation (WTO) rules.

But he says improvements are still needed in areas such as agriculture.

Mr Zoellick arrived in China on Sunday for a four-day visit after attending an inconclusive WTO meeting in Tokyo, at which 22 nations failed to agree on a proposal to lower import tariffs on agricultural products and cut farm subsidies.

He sounded a positive note after meeting Vice-Premier Wen Jiabao and Trade Minister Shi Guangsheng, announcing that China had given its support to a US proposal for cutting agricultural subsidies and tariffs.

'We are very pleased in that we got very good government support from China on our agriculture proposal,' Mr Zoellick said. 'Given the fact that China constrained its use of and cut a lot of its tariffs, it has been supportive of our proposal to cut subsidies and tariffs.'

WTO members have until March 31 to decide on a framework for an accord on agricultural trade. They will hold meetings next week with the WTO's agriculture negotiations chairman, Stuart Harbinson, who wrote the rejected plan.

Vice-Premier Wen Jiabao said China was resolved to carry out commitments it made in joining the WTO.

While complimenting China, Mr Zoellick said areas such as agriculture still needed improvement.

But he was encouraged by the response he had received from Chinese officials to resolving disputes over the import of genetically modified US soya beans. He said additional field tests China was conducting would not disrupt the trade, which reached US$1 billion (HK$7.7 billion) in 2001.

'I don't want to be premature in saying the problem is solved, but I got a very positive response and we have to follow up on the details,' he said.

An official at the American Soybean Association in Beijing said the extension of the testing and monitoring rules to September 20 gave both sides time to work on the issue. Exporters to China are required to apply for a permit from the Agricultural Ministry certifying that the products will not cause harm to humans, livestock or the environment.

About 70 per cent of US soya beans are genetically modified.

Mr Zoellick yesterday went to the southwestern city of Chongqing.

He is also due to visit Shenzhen and Hong Kong.

Editorial - Page 14



US envoy praises moves on WTO rules