US farmers fear China deal

13 June 2000



US farmers fear China deal

SMALL US farmers fear permanent trade relations between their country and China will hit their livelihoods, report the Financial Times.

Producers are concerned that China, with help from Western technology and agribusiness groups, will step up production and exports, driving down lacklustre commodity prices.

This is at odds with the official view from Washington which claims the US Congress vote for permanent relations will boost American farming.

The government forecasts US farm exports will increase by $2bn over the next five years as tariff cuts and tariff rate quotas take effect.

Meanwhile the FT reports that Indias decision to auction up to 5m tonnes of wheat in the domestic market is unlikely to cut stocks.

Trade officials and analysts say export may be the only option.