Laws of the People's Republic of China

The 11th Five-year Development Plan on Export of Agricultural Products

The Ministry of Commerce Contents Preamble

I. Guiding Concepts and Principles

II. Analysis on Export Competitiveness of Agricultural Products

III. Development Objectives for Export of Agricultural Products

IV. Policy Measures to Enlarge Export of Agricultural Products Preamble

China is a big agrarian country, and the Communist Party of China (CPC) and Chinese Government regard the settlement of the issues concerning rural areas, agriculture and farmers as their long-term task. The formulation of this 11th Five-year Development Plan on Export of Agricultural Products, the analyses on the situation in the international trade of agricultural products, and the definition of the development objectives and strategic measures constitute an important measure to enhance the international competitiveness of China's agricultural products, to enlarge the export of agricultural products and to solve the employment problems in rural areas and increase the income of farmers, reflect the implementation of the scientific concept of development, the balancing of urban and rural development, the balancing of development among regions, the balancing of economic and social development, the balancing of development of man and nature, and the balancing of domestic development and opening wider to the outside world, and are also a necessary requirement to build an all-round well-off society.

With the continual enhancement of the international competitiveness of China's agricultural products in the 10th Five-year period, China's export of agricultural products has seen a strong development and an increasingly-expanded scale, increasing from $16 billion USD at the beginning of the 10th Five-year period to $27.18 billion USD in 2005 with a growth rate of 70%, accounting for 3.6% of China's total export amount ($762 billion USD) of that year and 9.6% of the added value of agriculture (RMB 2271.8 billion Yuan) of that year. Besides, China's ranking in world's trade of agricultural products has incessantly moved upwards, and according to the statistics by the World Trade Organization (WTO), China's export of agricultural products ranked the 5th place in the world in 2004, accounting for 3.2% of world's trade of agricultural products and enjoying a growth compared to the beginning of the 10th Five-year period.

In the 10th Five-year period, China's export of agricultural products has experienced 4 changes:

(1)

Changes have taken place in the structure of commodities in that the labor-intensive products with comparative advantages have played a leading role in the export. Such advantageous commodities as horticultural, livestock and poultry, and aquatic and marine products had an export amount of $18.36 billion USD in 2005, accounting for 67.5% of the whole export amount of agricultural products. Meanwhile the exported agricultural products have rapidly been diversified, having now more than 1300 kinds over the former more than 900 kinds, and many miscellaneous articles have become leading exports. China now has the largest export volume of such agricultural products as garlic, peanut, broiled eel, canned mushroom, cider, shiitake fungus, bee honey etc., and the second largest export volume of tea, canned tomato paste, sausage casing, tobacco, maize etc. As far as the geographic distribution is concerned, a series of bases for the production and processing of agricultural products have taken shape everywhere, such as the vegetable export base in Shandong Province, the flower export base in Yunnan Province, the processing of broiled eel in Fujian Province, the shiitake fungus in the Provinces of Zhejiang, Fujian and Henan, the apple and cider in the Provinces of Shanxi and Shandong etc. And the processing skill of agricultural products has constantly been improved in that some products have had a mature and complete industrial chain covering the breeding, processing, packaging, transporting, marketing and development of new products.

(2)

Changes have taken place in the composition of exporters in that foreign-funded and private enterprises have become main exporters. The situation in the export of agricultural products at the beginning of the reform and opening-up characterized by a monopoly of a few foreign trade companies and a purpose of earning foreign exchanges has now been replaced by one characterized by an exporter composition of 17,600 enterprises and an active participation in the international competition upon the comparative advantages, and the enterprises with an integrated system covering growing, producing and trading have become leading exporters.

The amount of agricultural products exported by foreign-funded enterprises in 2005 reached $11.7 billion USD, accounting for 43% of China's whole export amount of agricultural products, and running ahead of state-owned enterprises as top exporters. And the amount of agricultural products exported by private enterprises has now accounted for 25% of China's whole export amount of agricultural products instead of a share of 7% at the beginning of the 10th Five-year period.

(3)

Changes have taken place in the export modes, and the business modes of "company plus base" and "company, base plus farmer" have gradually been popularized, and the export enterprises have had a stronger consciousness of quality safety. Most export enterprises of agricultural products have possessed their own production bases, carried out a standardized production, established gradually a scientific and effective quality monitoring system, enhanced their consciousness of quality safety, and done better in breaking the technical barriers. Some enterprises have accomplished an integration of growing, producing and trading, marching towards a modernized agriculture characterized by high quality, high yield, high efficiency, environmental friendliness and safeness. More and more export enterprises have obtained universal certifications in that there are now nearly 1,000 enterprises having obtained the Quality Assurance International Organic Certification and there are more than 2,000 enterprises having obtained the certification of the HACCP (Hazard Analysis and Critical Control Point).

(4)

Improvements have taken place in the market structure, and a diversified market structure has gradually been taking shape. Despite the fact that Japan, Hong Kong Special Administrative Region, the European Union, the United States, Republic of Korea and the ASEAN countries have long remained China's traditional market for export of agricultural products, and that the 6 main markets still share more than 80% of China's total export volume, China's export to the emergent markets has seen a far rapid growth rate compared to that of the traditional markets, and up to 2005, China's agricultural products have been sold to more than 200 countries and regions.

In the 10th Five-year period, some commodities have experienced a diversified market structure, entering into the developed countries and emergent markets: realizing a large-scale export of grain products to Taiwan Province, and the African and West Asian markets etc., thus breaking the former market structure with Japan, Republic of Korea and Southeast Asia as the main market; experiencing a breakthrough in the export of fruits to North America, Europe and Latin America; resuming the export of livestock to the Mid-Eastern region after a suspension of 8 years.

For a long time, the export of agricultural products has played an important role in encouraging employment in the rural areas, increasing the income of farmers, optimizing the industrial structure in the rural areas, enhancing the international competitiveness of the agricultural products, promoting the level of domestic relevant industries, and settling the issues concerning rural areas, agriculture and farmers.

(1)

Increasing the income of farmers. Although under the present condition£¬ the agricultural products are oversupplied in domestic markets, the export of agricultural products still bring more profits than being sold domestically. In some main producing areas, the export of agricultural products has become the main income source for the farmers there.

(2)

Encouraging employment in rural areas. The export of agricultural products has brought about the development of the agricultural, manufacturing and service industries, creating a large quantity of jobs for these industries. According to the statistics by experts, every $10,000-USD export of agricultural products can create about 20 jobs both directly and indirectly. Based on the export amount of agricultural products in 2005, the export of agricultural products has totally created more than 54 million jobs.

(3)

Promoting the development of agriculture. In order to accommodate the high standard and strict requirement in the international market, the standards for China's export of agricultural products have incessantly been optimized in the aspects of base building, variety, quality, packaging, warehousing and transportation, brand etc., meanwhile China has introduced in a large amount of foreign varieties, capitals, technologies and advanced managerial experiences during the opening-up of its agriculture. The export-oriented agriculture has been developed in many regions, and some bases for the production and export of advantageous agricultural products have taken form, such as the vegetable export base in Shandong Province, the flower and tricholoma matsutake export base in Yunnan Province, the processing of broiled eel in Fujian Province, the apple and cider in Shaanxi Province, and the tomato in Xinjiang Uyghur Autonomous Region etc.

At present, many problems still exist in China's export of agricultural products, for instance, the quality safety remaining to be improved, a strong impact of foreign technical barriers, a failure of establishing and perfecting the policy system for the promotion of the export and development of agricultural products, a lack of core competitiveness in the export enterprises of agricultural products etc. And if these problems remain unsettled, the growth and sustainable development of the export of agricultural products will be seriously restrained. China is now in the WTO post-transition period when its agriculture is confronted with a fully-increased competition pressure, and China's traditional small-sized and decentralized operation of agriculture cannot pose a threat towards the large-scale modernized agriculture of foreign countries, and this situation will not be fundamentally reversed in rather a long time. The unfair international environment for the trade of agricultural products due to the strongly-subsidized and highly-protected agriculture of the developed countries will not either be fundamentally changed in a short term. Therefore, during the 11th Five-year period, stress shall be put in the settlement of a series of policy issues that influence the export of agricultural products, in the creation of sound policy and trade environment, in the improvement of the export-promoting mechanism, in the full enhancement of the quality safety of the products, in the support of the export enterprises of agricultural products, and in the enhancement of the international competitiveness of China's agricultural products so as to make the export of agricultural products play an active role in readjusting the agricultural productive structure and in advancing a modern agricultural construction.

I.

Guiding Concepts and Principles

1.

Guiding Concepts

To uphold Deng Xiaoping Theory and the Important Thought of "Three Represents" as the guidance, to fully implement the spirit of the 16th National Congress of the CPC and the 5th Plenary Session of the 16th Central Committee of the CPC, to closely center on the objective of building a new socialist countryside, to implement of the scientific concept of development, to employ all available means to enlarge the export of agricultural products, to promote the change of the growing mode for the export of agricultural products and the readjustment of the export structure, to improve the quality and hygienic safety of agricultural products, to develop the agriculture characterized by high yield, high quality, high efficiency, environmental-friendliness and safeness, to promote the agricultural products to rise in value through processing and transformation, to enhance the export competitiveness of agricultural products, to foster the export enterprises of agricultural products, and to advance the sustainable development for the export of agricultural products, so as to make China's agriculture more open to the outside world, and make contributions to increase the income of farmers, to optimize the agricultural productive structure, to promote the industrialized operation of the agriculture, and to advance the agricultural modernization.

2.

Fundamental Principles

(1)

To adhere to the scientific concept of development and to encourage employment in rural areas and increase the income of farmers. To promote the settlement of the issues concerning rural areas, agriculture and farmers serves as the current basic task in enlarging the export of agricultural products. The development of the export of agricultural products shall be based on serving the overall situation of the economic and societal development so as to bring into full play its important roles in encouraging employment in rural areas, in promoting the increase of the income of farmers and the readjustment of the agricultural productive structure, and in enhancing the competitiveness of the agriculture.

(2)

To adhere to proceed according to the practical situation, and to bring into full play the comparative advantages. China's export of agricultural products is still in its primary phase, in that it remains far behind China's overall development of foreign trade, that the export enterprises have a smaller scale and a weak strength, that the quality and processing of products remain unsatisfactory, that the quality and efficiency of the export of agricultural products remain unsatisfactory, and that its roles in encouraging employment in rural areas, in increasing the income of farmers and in readjusting the industrial structure of the agriculture remain to be further strengthened. Therefore, the extension and development of the export of agricultural products shall be based on the characteristics of China's agricultural resources and giving full play to the advantage of an abundant labor force, and on the avoidance of disadvantages of shortage of land and water, shall proceed according to the practical situation and scientifically formulate the development objectives and strategic measures and put them into implementation.

(3)

To adhere to technological innovation, and to emphasize the fostering of the core competitiveness. The essence of the international competition of agricultural products is the technological competition, and thus the technological innovation is the orientation for the future competition of agricultural products. In the 11th Five-year period, we shall carry out the strategy of thriving the trade through science and technology, and shall quicken the pace of technological innovation and structural update, enhance the processing of agricultural products, optimize the structure of the export products, and strive to enhance the technological content and added value of the export agricultural products through the introduction and self-development of new products and technologies.

(4)

To adhere to the market-oriented reform, and to actively foster exporters. We shall bring into full play the fundamental role of market in distributing resources, emphasize the creation of a sound operational environment for market subjects, coordinate the state's macroscopic objectives and the microscopic behaviors of market subjects, and promote the sustainable development of the export of agricultural products.

(5)

To adhere to the development principles of stressing key points and making overall plans. In the 11th Five-year period, we shall mainly support the extension of export in the areas where the export of agricultural products is obviously advantageous, the export of such advantageous agricultural products as vegetables, fruits, tea, aquatic and sea foods, poultry etc., and the enterprises have an integrated system of growing, processing, and trading, a productive base of their own, a guarantee of product quality, a strong processing capability, and obvious competition advantages. Meanwhile, due attention shall be given to a balanced development among different regions, industries, enterprises, products and markets, and the short-term and long-term objectives shall be planed as a whole.

3.

Development Strategy

According to the abovementioned guiding concepts and fundamental principles, China's overall strategy in enlarging the export of agricultural products during the 11th Five-year period is to establish a strategy of comparative advantages based on the export of low-cost and labor-intensive agricultural products, to enhance the international competitiveness of the export of agricultural products with the quality safety as core, and to establish a global export system of agricultural products characterized by a diversification of markets. To improve the policy measures in promoting the export of agricultural products, to actively cope with the complicated international competition, to make China's agriculture more open to the outside world, to optimize the industrial structure, to encourage employment in rural areas, and to increase the income of farmers.

(1)

To establish a strategy of comparative advantages based on the export of low-cost and labor-intensive agricultural products

In quite a long time henceforth, such labor-intensive agricultural products as aquatic products, livestock, horticultural products and processed products etc. will still have a strong comparative advantage in the division of labor and competition in the international market. To establish an export development strategy of comparative advantages is for the purposes of promoting the strategic readjustment of the agricultural structure and enhancing the efficiency in resources distribution, and of releasing the employment pressure in rural areas and changing the function of export from "foreign exchanges contribution" to "employment contribution". This is not only the need of bringing into full play the advantages in China's agriculture and taking part in the international competition, but also a strategic choice to build a modernized agriculture, to develop rural economy, and to increase the income of farmers.

(2)

To enhance the international competitiveness of the export agricultural products with the quality safety as core

At present, China's export agricultural products are vulnerable to the restriction of technical barriers of foreign countries due to such quality safety issues as the epidemic diseases, residue of pesticide and veterinary medicine, and environmental pollution etc, restraining the full play of the advantages of aquatic products, livestock, fruits and vegetables etc. Besides the full play of the competition advantages of labor-intensive agricultural products, we shall fully enhance the core competitiveness of China's agricultural products and establish a reputation in the international market through enhancing the quality safety of products, incorporating technological innovations and structural updates, introducing from developed countries and regions the quality varieties, food processing technologies, marketing modes, advanced experiences in international operations so as to enhance the core competitiveness of the export of agricultural products and hold a good reputation in the international market.

(3)

To establish an export market system of agricultural products characterized by a diversification of markets

In recent years, China has exported more agricultural products to Oceania and South America, however, the high dependence on such traditional markets as Japan, Republic of Korea, the ASEAN, and the European Union etc. remains unchanged. Because international trade frictions are frequent in the trade of agricultural products, the over-concentration of export markets makes China's products vulnerable to restrictions of technical barriers, antidumping and other non-tariff barriers from importer countries, and goes against the avoidance of risks in the international market and the establishment of a stable export-promoting mechanism for agricultural products. Therefore, we shall gradually readjust the market structure for the export of agricultural products, establish a global export system of agricultural products characterized by a diversification of markets, by means of stabilizing and enlarging such traditional markets as Japan, Republic of Korea and the ASEAN etc., deeply developing such markets with huge potentials as the European Union and the United States, and actively developing such emergent markets as Middle East and the Commonwealth of Independent States etc.

II.

Analysis on Export Competitiveness of Agricultural Products

1.

International Environment for Export of China's Agricultural Products

(1)

The global trade of agricultural products grows steadily. After a negative growth during the 3 years from 1997 to 1999, the global trade of agricultural products began to grow steadily, and especially in 2003 and 2004 it kept a growth rate of more than 10%. According to the statistics by the WTO, the global trade of agricultural products from 2000 to 2004 has seen an average annual growth rate of 9%, tantamount to the growth rate of global goods trades.

(2)

The developed countries have more shares in the trade of agricultural products. Compared to the 1960s, the developed countries have had a share of more than 70% against the former less than 60% in the international trade of agricultural products, and the developing countries have now a share of less than 30%. This is because the developed countries are able to export and import more agricultural products due to the strong competitiveness of their agricultures and their abundant purchasing power, and because the primary agricultural products, as main exports of the developing countries, have had a continuously-dropping price.

(3)

The consumption structure has changed; the processed end-products have more shares. Grains have a continuously-decreasing share in the consumption of foods, while the aquatic and marine products, vegetables, and fruits have a steadily-increasing share. Consumers in the United States now annually consume 25% more vegetables and fruits than they did 20 years ago, and have a rapidly-growing demand for organic foods. The end products that can be directly consumed have now a share of 30% against less than 20% in 1980.

(4)

The international environment for agricultural competition remains unfair. Agricultures in the United States, the European Union and other developed countries remain highly subsidized, and such export-supporting policies as export subsidy and export credit etc. remain applicable there. The huge subsidy gravely distorts the international trade of agricultural products in that the agricultural competitiveness of developed countries is enhanced, and the competition advantages of agricultural products from developing countries including China are neutralized, and that agricultures in developing countries are badly impacted, causing huge damages to those developing countries that are unable to subsidize their agricultures and making China's agricultural products difficult to enter into the markets of developed countries. Besides, traditional tariff-rate quota, tariff peaks, tariff escalation, seasonal tariff, and non-tariff barriers represented by technical trade barriers exist ubiquitously, acting as a big obstacle for China's export of agricultural products.

(5)

The new round WTO talk on agriculture proceeds slowly due to the anfractuosities of interests, and the effort to establish a new rule and order for international agricultural trades proceeds with difficulties. In quite a long time henceforth, China's export of agricultural products will be confronted with extremely complicated international competition environment. The international market access conditions for agricultural products have not been effectively improved, and serious problems exist in the tariff peaks and tariff escalation for agricultural products, and the antidumping and special safeguards against China's agricultural products may be continuously escalated.

2.

Comparative Advantages of China's Export Agricultural Products

China has an arable land of 1.95 billion mu (1 hectare=15 mu), only 10.4% of China's territory; China has a land per capita of 1.5 mu, less than 1/2 of world's average, and has a tendency of further decrease; China's water per capita is of 1/4 of world's average. Given China's practical situation in agricultural resources, the development of land-intensive agricultural products is less advantageous; as a result, such land-intensive products as wheat, cotton, and soybean etc. are disadvantaged in the international competition of agricultural products. Contrarily, China has an abundant and low-cost labor force, and such labor-intensive agricultural products as livestock, horticultural products etc. have relatively strong export potentials. During the 11th Five-year period, the export of labor-intensive agricultural products will keep strong competitive advantages.

(1)

Advantages in the diversity of agricultural resources. Spanning the subtropical zone and temperate zone, China has diversified climatic conditions and natural resources, producing various kinds of agricultural products and thus meeting the diversified demands in the international food market. China is now bringing full play the regional comparative advantages, emphasizing the fostering of advantageous agricultural products and producing areas, and building producing bases for advantageous agricultural products, namely the main producing areas of orange in the upper-and-middle reach of the Yangtze River, South of Jiangxi Province, South of Hunan Province, North of Guangxi Zhuang Autonomous Region, South of Zhejiang Province, South of Fujian Province, and East of Guangdong Province, the apple producing area in Bohai Bay and Loess Plateau in Northwest China, the beef cattle producing area in Central China and Northeast China, the mutton sheep producing area in Central China, Inner Mongolia, Hebei Province, Northwest China, and Southwest China, the milk producing area in Northeast China, North China, Beijing, Tianjin, and Shanghai, the aquatic products breeding area in Southeast Coastal Area, Yellow Sea and Bohai Sea. In most areas of China, the raising of livestock and poultry and the growing of vegetables have all comparative advantages.

(2)

Advantages in labor force resources. According to studies, China's agricultural sector needs only a rational labor force of 196 million persons, while in 2002 those employed in the agricultural sector reached 325 million persons with a surplus labor force of 129 million persons. And according to the estimates by the Ministry of Agriculture, the surplus labor force in rural areas will reach 180 million persons at the end of the 10th Five-year period, providing for quite a long time low-cost labor force to the production, processing and service of export agricultural products. Those abovementioned conditions are very beneficial to the development of labor-intensive agricultural products. China's vegetables, fruits, livestock, aquatic products have an obvious lower domestic price compared to the international one, possessing an advantage of cost and price competitiveness.

(3)

Advantages in market locations. Asia is a market with the most importance and growth potentials for world's trade of agricultural products, and Asian market imported 23% of world's agricultural products with Japan, Republic of Korea, Hong Kong SAR, Taiwan Province, Indonesia, Thailand etc. as important import countries and regions of agricultural products in 2004. Thanks to the short distance and transportation and sale conveniences, China has an obvious location advantage in export to the Asian market such high-value agricultural products as vegetables, fruits, aquatic products, meats etc.

3.

Main Problems that Impact China's Export of Agricultural Products

Despite that China needs to readjust its strategy of low-cost competition advantage in the long run, China still needs to bring into full play its comparative advantage and enlarge the export of agricultural products in the near future. At present, a series of problems are impacting China's full play of its export advantage, and restraining the effective translation of the resource and comparative advantages of China's agricultural products into competition advantages and export growth.

(1)

Quality safety management of export agricultural products needs to be further strengthened. In recent years, China's export agricultural products have enjoyed a constantly-raised quality safety level; the enterprises have enjoyed a constantly-strengthened consciousness of quality, and most of export enterprises of agricultural products have obtained their own producing bases, realizing a standardized production and gradually establishing a scientific and effective quality monitoring system. However, influenced by the overall agricultural productive mode, the quality safety needs to be further enhanced, and the issues of quality and hygiene remain an important factor in restraining China's extension of export.

(2)

Foreign technical barriers will render a long-term obstacle to China's export of agricultural products. Developed countries have continuously elevated their technical standards on import of agricultural products, covering eco-environment, animal welfare, intellectual property rights and other fields. Japan and the European Union have successively revised their laws concerning food safety and hygiene; Japan formulated the Positive List System for Agricultural Chemical Residues in Foods, greatly elevating the testing standards for agricultural chemical residues in foods; the European and American developed countries raised a demand of quality traceability for agricultural products and foods, raising thresholds for China's export of agricultural products.

(3)

The export-supporting policy system has not yet taken form. Difficulties in financing and the high credit threshold have become the most important factor in restraining the development of exporter enterprises. The financial institutions in some areas offered to export enterprises of agricultural products a one-year loan with interest rate of 9-10%, far beyond the capacity of these enterprises; land, mountain forest, agricultural infrastructure and other assets cannot be mortgaged for loans; and the high export cost impacts the benefits of the enterprises. The developed countries have continuously elevated the technical standards for import agricultural products, as a result of which, China's export agricultural products have to undergo more and more testing indexes and thus have higher export costs, while the costs for the testing and quarantine of agricultural products are borne by governments in many developed countries. And the export risk-avoiding system needs also to be enhanced, because the enterprises have weak capacities in risk avoidance. At present, China's agricultural insurance, export credit insurance and other systems need to be further improved. The export of agricultural products has high risks, and the enterprises have weak capacities in risk avoidance, and there is still room for the export enterprises of agricultural products to participate in the export credit insurance.

(4)

Trade-promoting mechanism remains imperfect. Information consultancy, exchange and training, publicity and popularization, and other public services are in dire need of being enhanced, and the channels for export business need to be broadened. At present, most of China's export enterprises of agricultural products are small-sized and lacking in the abilities of information collection, disposal and analysis because of their short-time presence in the international market. China's information services for the export of agricultural products are far beyond the demands of enlarging export in that information resources are scattered, that an authoritative information-releasing mechanism remains unestablished, and that the government's information service mechanism remains imperfect. Besides, such service mechanisms as market development, international marketing, monitoring and early-warning, technological dissemination, consultancy and training etc. for the export enterprises of agricultural products fail to take shape.

(5)

The export enterprises of agricultural products lack international competitiveness, and the industrial organizations for agricultural products see a lagging development. In recent years, China's industrialization of agriculture has developed fast, and some leading enterprises with certain scale and strength have begun to emerge. Anyhow, generally speaking, most of China's agricultural products are still based on the production and operation of farmer households, presenting a pattern characterized by small size, large group, small production and large market. There are few leading export enterprises, and most of the enterprises are small-sized, weak, and lowly-organized, and have few capacities in resisting risks in the export market and breaking technical barriers.

(6)

Agricultural products are lowly-processed, and lacking in technological innovations and famous brands. At present, China's processing industry of agricultural products has a relatively lagging development with primary products accounting for more than 60% of the export agricultural products. The low level in quality and processing goes against the fostering of core competitiveness of exporter enterprises, and is inclined to make China's products vulnerable to the antidumping and protective measures by foreign countries. China's export agricultural products have low technological contents, too many traditional products and few innovative products, and the enterprises have weak capacities in new product development and technological innovation, beyond the demands for diversified consumption in the international market. Up to now, China's agricultural products fail to possess internationally-known brands. Therefore, how to further enhance the deep processing of agricultural products and the value contents of the export products and to promote the export of agricultural products to establish fames have become an important topic to enhance the export competitiveness of agricultural products.

III.

Development Objectives for Export of Agricultural Products

1.

Overall Objectives

According to China's agricultural development and resources, we shall bring into full play the roles of the export of agricultural products in optimizing the agricultural industrial structure and increasing the income of farmers, accommodate the requirements of changing growth modes of foreign trade, and draw on the advanced experiences of foreign countries in promoting the trade of agricultural products. The overall objectives for the export of agricultural products in the 11th Five-year period are as follows: the export of agricultural products shall reach $38 billion USD and realize an average annual growth rate of 7% by 2010. Such advantageous agricultural products as horticultural, aquatic, livestock and poultry products etc. shall have a fully-elevated quality safety level, the end agricultural products shall have more shares in the total exports, and a series of internationally-competitive export varieties and brands shall be formed. The export of agricultural products shall be better organized, and a series of industrial organizations of agricultural products that can represent the whole industries and well conduct self-disciplines and services for the industries shall be established. A series of internationally-competitive and radiant leading export enterprises of agricultural products shall be fostered. The studies on the laws, regulations and technical standards of importer markets shall be strengthened, the trainings on relevant laws, regulations and technologies for the export enterprises shall be strengthened, and the self-control capacity of quality safety of the export enterprises shall be fully enhanced. The export advantages in different areas shall be brought into full play, regional development strategies shall be formulated, and a location distribution for the export of agricultural products characterized by a terraced development shall be formed. The traditional markets shall be continually consolidated and deeper developed, and emergent markets shall be actively developed so as to form a diversified market structure for the export of agricultural products.

2.

Export Objectives for Different Products

(1)

The export advantages of the aquatic and marine products shall continually be brought into full play. The market shares in East Asia and Southeast Asia shall be consolidated and elevated, and the European and American markets shall be actively developed. Meanwhile, we shall strengthen the source administration on aquaculture and fishery, establish and perfect the registration and record system for export bases and the hygiene registration system for export and processing enterprises, pursue the Good Agricultural Practices (GAP), promote more aquaculture and processing enterprises to obtain GAP, HACCP and other international certifications, so as to fully enhance the quality safety of products.

(2)

The export of horticultural products shall be developed in a leaping way. We shall enhance the processing, actively develop European and American markets, disperse operational risks, and develop new varieties tailored to European and American tastes. We shall actively develop such deep-processed products with high added values and high nutrition as condensed vegetable juice, preserved vegetable, vegetable for babies, garlic essence etc., shall produce and process such internationally-known vegetables with medical and healthcare values as asparagus, Chinese yam, various kinds of edible fungi and wild vegetables etc., shall enhance the preserving technologies for fresh fruits and marketing, and actively develop new markets for condensed fruit juice, shall vigorously publicize and recommend organic fruits and vegetables, shall make an attempt to enter edible fungi, pickled vegetables, bean products, condiments and other oriental traditional foods into European and American markets. Meanwhile, we shall actively pursue the GAP standardized production in the recorded export bases, strengthen the hygiene registration administration on export and processing enterprises, establish a quality traceability system, make more enterprises that grow and process fruits, vegetables and flowers obtain GAP, HACCP and other international certifications, foster brand products, and fully elevate the international competitiveness of products.

(3)

The export of livestock and poultry products shall grow steadily. We shall stabilize Hong Kong SAR and Southeast Asia markets, enlarge the export to Russia, and actively develop beef and mutton markets in Middle East and Central Asia. We shall energetically develop meat processing, enlarge the export of processed products, adhere strictly to the export hygiene registration system, pursue the HACCP certification, and enhance the quality safety self-control capacity of export enterprises. Meanwhile, we shall further regulate the supervision and control of disease-free areas, actively popularize the GAP standardized production, strengthen the administration of the registered and recorded breeding places, popularize the quality safety administration mode of living livestock and poultry for Hong Kong SAR and Macao SAR, and fully enhance the quality safety of products.

(4)

The traditional export market share of grain and bean products shall be maintained. During the 11th Five-year period, we shall, according to the changes in the supply and demand of domestic grain and under the precondition that the domestic grain security is guaranteed, consolidate the traditional export markets of grain, encourage the export of deep-processed grain products with high added values, and gradually increase the international market share of beans by fully using China's resource advantage in diversified varieties of beans and regional production.

During the 11th Five-year period, we shall carry out the strategies of technological innovation and structural update in an all-round way, develop the export of agricultural processed products, raising their share in the total amount of export agricultural products to more than 50% with an amount of $19 billion USD.

3.

Development Objectives for Different Markets

The establishment of a diversified global market system for agricultural products is one of the important objectives to enlarge the export of agricultural products during the 11th Five-year period. We shall stabilize and enlarge the markets of Japan, Hong Kong SAR, the ASEAN, and Republic of Korea, deeply develop the markets of the European Union and the United States, further enlarge the export to the markets of Russia, Canada, India etc., and make efforts to develop such emergent markets as Latin America, Oceania, Africa etc.

(1)

To continue to consolidate traditional markets

(a) Japan is one of world's main importers of agricultural products, and also the biggest export market of China's agricultural products. At present, nearly 1/3 of China's export of agricultural products is transported to Japan, and China is Japan's second biggest source country of imported agricultural products (having a market share of 13.8%). During the 11th Five-year period, we shall, upon the consolidation of the current export volume to Japan, enlarge the export to Japan especially the export of end and processed products.

(b) Hong Kong SAR's demand of agricultural products and intermediary trade position mean specially for the export of agricultural products of Chinese Mainland, which is the main supplier of fresh foods for Hong Kong SAR. However, the Mainland's agricultural products have less market share in Hong Kong SAR in recent 10 years, dropping to 11% in 2004 from 22% in 1995, and Hong Kong SAR was reduced to the 5th export market for the Mainland's agricultural products in 2005 (the 2nd in 2004). The quality of the Mainland's agricultural products needs to be further enhanced so as to resume the market share.

(c)Republic of Korea is one of the most important export markets for China's agricultural products, and remains the 3rd biggest export market for China in most time of the recent 10 years. And now the trade of agricultural products between the two countries is being gradually strengthened. Most of China's export of agricultural products to Republic of Korea is grains and aquatic products, then vegetables and oil plants. China shall further bring into play the geographical and comparative advantages so as to enhance the market share of its agricultural products.

(2)

To deeply develop markets with potentials

(a)The ASEAN market. In the past 20 years, Southeast Asia is one of the regions with fastest economic growth in the world. The rapid growths of population and income in this region lead to increased demands for agricultural products, and China's temperate agricultural products and tropical agricultural products of the ASEAN complement each other.

In November 2002, China and the ASEAN concluded the Framework Agreement on Comprehensive Economic Cooperation and the Memorandum of Understanding on Agricultural Cooperation, and both parties concluded the Protocol to Amend the Framework Agreement on Comprehensive Economic Cooperation in Indonesia in October 2003, deciding to gradually reduce to zero the tariff of nearly 600 products (mainly the agricultural products subject to from Article 1 to Article 8 of the Tariff Paragraph) from 2004 to 2006. Up to April 2005, China completed the Early Harvest negotiations with all the ASEAN countries, and the tariff for the Early Harvest agricultural products of both China and the ASEAN countries are reduced to zero by 2006. In December 2004, both parties concluded the Agreement on Trade in Goods, stipulating China and the old ASEAN member states will establish a free trade area by 2010, and China and the new ASEAN member states (Vietnam, Laos, Myanmar, and Cambodia) will establish a free trade area by 2015. At that moment, the trade of agricultural products between China and the ASEAN will be liberalized.

During the 11th Five-year period, China's export of agricultural products to the ASEAN will have an uncommonly-seen historic opportunity and a relatively loose trade environment, and the export may be further enlarged. We shall seize the favorable opportunity of establishing a China-ASEAN free trade area and the geographic and custom advantages so as to enlarge China's export of livestock and processed products to the ASEAN.

(b)The European Union market. The European Union is world's largest market of agricultural products with a huge consumption scale, and also a region with the most highly-protected agriculture in the world, a highly protective import tariff, and a rigid technical standard. After its eastward enlargement, the European Union has become the 2nd biggest export market for China's agricultural products. During the 11th Five-year period, we shall formulate a comprehensive and active market-entering plan to enlarge the export to the European Union, and develop the export of the livestock, horticultural and aquatic products characterized by high quality, high added value and deep processing and of organic and special agricultural products.

(c)The United States market. The United States is world's largest exporter of agricultural products, and also one of the main importers. It is the 3rd or 4th biggest export market for China's agricultural products, with an export share of 9-10%. In recent 10 years, China has exported more and more agricultural products to the United States, and China's agricultural products have obvious structural and comparative advantages and have thus great export potentials. The main agricultural products exported from China to the United States are aquatic and horticultural products, and the export of the end products of fish, meat, fruits, nuts and vegetables grows fast. Viewing the complementariness and balance of the trade of agricultural products between China and the United States, we shall, during the 11th Five-year period, continue to give full play to the comparative advantages of China's agricultural products and actively advance the export of agricultural products to the United States.

(3)

To vigorously develop emergent markets

In recent years, China's export of agricultural products to such emergent markets as Russia, Middle East, South America, Central Asia etc. has seen a rapid growth. During the 11th Five-year period, we shall actively establish stable trade channels with these emergent markets, adopt flexible trade modes, help the enterprises establish effective risk-prevention mechanisms, and export such agricultural products with obvious price advantages as grain (e.g. rice), vegetables, tobacco etc. We shall, according to the principles of complementariness, cooperation and reciprocity, gradually enlarge the Mainland's share in the market of agricultural products in Taiwan Province, and mainly export the temperate agricultural products with high complementariness and the Mainland's special agricultural products.

4.

Export Objectives for Different Regions of China

(1)

East China

Possessing the advantages in capital and human resources and the incomparable geographic advantages, East China is the key export region of agricultural products in China. During the 11th Five-year period, Provinces of Shandong, Guangdong, Zhejiang, Fujian, Liaoning and Jiangsu and municipalities of Beijing and Shanghai will still be the key export regions of agricultural products in China, and will account for 80% of China's total export amount. East China shall introduce in more advanced technologies from foreign countries, continue to bring into play the export advantages in aquatic products, vegetables, livestock, fruits etc., invest more in science and technology, develop the agricultural products with intellectual property rights, foster a series of leading enterprises and cooperative economic organizations with radiances, enhance the comprehensive agricultural quality, optimize the structure of export products, focus its attention on developing the export of processed foods, forge famous-brand products, and promote the comprehensive update of the export of agricultural products. And the export enterprises of agricultural products in East China are also encouraged to establish export bases in Central and West China so as to promote the terraced transfer of the processing and export structures of agricultural products in China, and to gradually promote the development of export of agricultural products there.

(2)

Central China

Most of Central China is China's traditional agricultural region. Provinces of Heilongjiang, Jilin, Henan, Hubei, Hunan, Jiangxi and Anhui are China's main grain-producing regions, assuming an important task of grain supply. During the 11th Five-year period, these regions shall further readjust the structure of grain production, optimize the varieties, enhance the quality, and enlarge the scale of export of agricultural products. Meanwhile, these regions shall, according to their different geographies, climates, sunshine resources and characteristics of crops, bring into play their own regional comparative advantages, quicken the industrialized operation, and innovate the organizational forms and mechanisms of agriculture, shall, targeting the overseas markets, establish various kinds of producing bases of agricultural products, conduct aquaculture and the production of fruits, vegetables and traditional Chinese medicine herbs, develop grassland animal husbandry with hills, mountainous lands, grass slopes and other resources, and focus on the production of beef cattle and mutton sheep and building of China's export bases of high-quality livestock products.

(3)

West China

West China has advantages in special varieties and climates, and has numerous varieties of horticultural products with specialties and great development potentials. And these products are mainly labor-intensive, and thus able to absorb a large quantity of rural labor force and increase the income of farmers. During the 11th Five-year period, West China shall focus its attention on developing the export of agricultural products with specialties, organic agricultural products and those with certifications of origin, enhance the added values of these agricultural products with specialties, develop the production of various kinds of products with local favor and specialties with traditional techniques, and foster the new growth points for China's export of agricultural products. Meanwhile, West China shall stress the development of trade relations with contiguous countries, energetically develop border trades by bringing into full play the geographic advantage of being contiguous with Vietnam, Myanmar, India, Mongolia, Russia, Afghanistan, Pakistan, Kazakhstan, Tajikistan and other countries and regions, and further develop markets for export of agricultural products.

IV.

Policy and Measures to Enlarge Export of Agricultural Products

1.

To Strengthen Quality Safety Control and to Enhance the Competitiveness of Export Agricultural Products

(1)

To strengthen the control on producing sources of export agricultural products. We shall actively pursue the technological application of GAP, advance the standardized production, promote the improvement of traditional producing modes, support the export enterprises of agricultural products to establish their own growing and breeding bases, popularize the operational mode of "company plus base" for the export of agricultural products, establish the traceability system, and carry out a whole-process quality control. We shall bring into full play the radiant role of the comprehensive model zones of standardized production, fully carry out the standardized production; conduct strict controls on the use of agricultural inputs, strengthen the monitoring and control on the use of chemical fertilizers and pesticides, and strictly forbid the production and use of highly-toxic and high-residue pesticides. We shall guide the producing bases to establish the production record archive for agricultural products, and conduct strict quality controls on the producing process. We shall quicken the advance of the transformation of growing and breeding modes, guide all regions to develop moderate-scale growing and breeding in line with the requirements of epidemic preventions, strengthen the building of disease-free zones, and fully enhance China's capacity in controlling and preventing epidemic diseases of animals and plants.

(2)

To strengthen the control on the export and processing of agricultural products, and the control and guidance on processing enterprises of export foods. We shall, through state exemption of inspection, establishing famous brands and other strong-supporting policies, guide the enterprises to enhance the quality of products themselves so as to guarantee the food safety. We shall actively pursue the quality regulation systems of Good Manufacturing Practice (GAP) and HACCP, strengthen the registration system for export foods, carry out an effective food safety control on the whole process of food production and processing, encourage export enterprises to obtain such internationally-acknowledged certifications as GAP, GMP, HACCP etc., and establish records for the growing and breeding of agricultural products and the quality traceability system so as to acquire the passport to the international market.

(3)

To further improve and strengthen the inspection, testing and safety monitoring system for export agricultural products. We shall fully strengthen the construction of the inspection and testing infrastructures for agricultural products, elevate the technological level of the entry-exit inspection and quarantine equipments, and strengthen the training of professional technological personnel. We shall guide and urge the industrial organizations and export enterprises to enhance the self-inspection and pre-inspection capacities, strengthen the building of industrial and enterprise laboratories, and foster professional inspection personnel. We shall encourage the inspection and testing institutions to obtain the state's accreditation of their laboratories, and stress the strengthening and improving of the inspection and testing on exported advantageous agricultural products and relevant agricultural inputs, so as to enhance the international competitiveness of China's agricultural products.

2.

To Optimize the Structure of Export Products and to Carry Out the Strategy of Brand

The enterprises shall be encouraged to develop the export of deep-processed agricultural products and to enhance the added values of agricultural products. And the export enterprises of agricultural products shall be supported and guided to develop their own brands and to establish brand reputations and stable consumer groups in the international market.

(1)

We shall encourage the enterprises, through stressing both the introduction of advanced technologies and high-quality varieties from overseas and the domestic independent research and development, to develop their own products with intellectual property rights, and to enhance the core competitiveness. Policies shall be formulated to encourage the enterprises to introduce advanced agricultural production, processing technologies and equipments from overseas, and to import new varieties and technologies, and biological fertilizers, biological pesticides and other agricultural inputs that will help to ameliorate the agricultural eco-environment.

(2)

We shall actively pursue the origin registration and record system for agricultural products, give, according to law, preferential exemption of inspection to the exported agricultural products that are subject to the protection of mark of origin and in line with the relevant provisions concerning exemption of inspection, and facilitate the customs clearance for the goodwill export enterprises of agricultural products subject to the protection of mark of origin.

(3)

We shall establish a standard system of product quality, and actively pursue industrial standardization and identification in the export of agricultural products. We shall popularize the standardized growing and breeding, and stabilize the product quality through science and technology and a whole-process monitoring on production. We shall establish an identification marking system of product quality, covering the actual price per standard unit, fundamental components of product (component mark), nutritional quality of food (nutrition mark), and freshness of product (date of production), so as to base the price on the product quality. We shall encourage the industrial organizations to formulate industrial standards and identifications for the export of designated eligible horticultural, livestock and poultry products, and actively pursue them in export enterprises by the means of certification, and publicize and present them in main export markets.

(4)

We shall make overseas marketing plans for branded agricultural products, and the "Development Fund for Export Brands" shall prioritize the support of establishing the export brands for agricultural products. We shall subsidize the export enterprises of well-known agricultural products to conduct the overseas protection of their own brands and intellectual property rights, to launch advertising campaigns, expositions and popularizations to enlarge their influences in the international market, shall support the branded export enterprises to obtain certifications of the import countries (regions), employ professional institutions to formulate brand development strategies, and conduct researches and developments and designs; and shall help the branded enterprises to establish international marketing channels so as to take the lead in entering the transnational purchase and supply chain.

3.

To Enhance Training and Information Services and Carry out Export-promoting Plans for Agricultural Products

We shall encourage the export enterprises of agricultural products to consolidate and enlarge their shares in the international market, and help them enhance the international marketing capacity through information services, training consultancy and international expositions, so as to establish healthy and stable export channels.

(1)

To establish an authoritative information-releasing system for the trade of agricultural products and an export early-warning system for sensitive products. The relevant authorities and industrial organizations shall conduct tracing studies on the market share and competition performance of China's exported agricultural products in main markets, timely pre-warn and command the overseas trade investigations against China's agricultural products, establish a rapid reaction mechanism, bring into full play the organizational and coordinative role of industrial organizations, organize and guide the responses to antidumping claims, and provide to the enterprises legal aids and technical supports.

We shall address ourselves to formulating building plans of response strategies and early-warning systems for technical trade measures. We shall establish an early-warning system for technical trade barriers characterized by coordination from authorities, leading from industrial organizations, participation from enterprises and support from science and technology, improve the information collection and disposal system for overseas technical regulations and quarantine standards, and guide the technological transformations, operations and trading by export enterprises of agricultural products. And we shall establish an early-warning system in the export of agricultural products and conduct a rapid response.

(2)

To enhance the information services for the export of agricultural products. We shall strengthen the statistics and analyses in the exported agricultural products, trace and monitor the situations in key export markets, conduct surveys on overseas markets of agricultural products, and establish an effective information-releasing mechanism for international agricultural products. We shall strengthen cooperation among authorities, integrate information resources, encourage eligible regions and industrial organizations to conduct regionalized and professionalized information services for the export of agricultural products, and gradually create a terraced and integrated information service system for the export of agricultural products. Governmental authorities shall timely inform export enterprises of such situations in relevant countries as the agricultural and trade policies and regulations, epidemic diseases, quality and hygiene standards, inspection and quarantine measures, trade frictions, agricultural negotiations etc. During the 11th Five-year period, we shall in succession release to export enterprises such public information products as export guidelines on key export countries (regions) and China's main agricultural products, and monthly reviews on key export products etc. And industrial organizations and professional consultancy institutions shall be encouraged to provide farmers and export enterprises of agricultural products with export trade information services and consultancy services concerning technical regulations, standards, inspection and quarantine measures etc. of import countries (regions).

(3)

To conduct trainings for the export of agricultural products, and to enhance the quality of the employed. We shall formulate scientific and systematic training plans for the export of agricultural products, actively support industrial organizations and local governments, conduct trainings concerning the overseas technical standards on the import of agricultural products, the establishment of quality monitoring system in enterprises, the popularization of export industrial standards, the obtainment of international certifications, the improvement of production and processing technologies etc., and stress the popularization of GAP and HACCP and trainings concerning the new technical standards of import countries (regions). During the 11th Five-year period, the government shall invest more in trainings concerning the export of agricultural products, enlarge the scope of trained enterprises and elevate the training level.

(4)

To actively support enterprises to launch international marketing activities. During the 11th Five-year period, we shall mainly subsidize enterprises and industrial organizations to participate in international expositions and fairs so as to publicize China's agricultural products and to enhance the international reputation of China's products, support enterprises and industrial organizations to conduct market surveys, advertising for sales promotions, marketing planning, product presentations and other marketing activities, strengthen the technological exchanges and cooperation with international certification and retailing organizations, advance the international recognition of China's certifications of agricultural products and foods, support domestic certification organizations to handle certifications meeting the requirements of import markets, and subsidize export enterprises to obtain the certifications required by import markets.

(5)

To improve the logistics of exported agricultural products and enhance the export efficiency. We shall quicken the construction of refrigeration chain system represented by cold storage and low-temperature storage and transportation for agricultural products, quicken the establishment of green channels for truckload fresh agricultural products, reduce and exempt the tolls for transportation vehicles of agricultural products, and realize an inter-provincial transportation. During the 11th Five-year period, we shall focus on solving the problems in the refrigeration chain transportation for key export regions of agricultural products and main agricultural products producing areas in West China so as to reduce transportation costs and to break the development bottlenecks.

4.

To Enhance the Building of Industrial Organizations and Make the Export of Agricultural Products Better Organized

(1)

To make the agricultural production better organized. Professional agricultural cooperative organizations shall be energetically established in key export regions of agricultural products, so as to organize the execution of export contracts, to guide farmers to conduct standardized productions, to help export enterprises reduce their organizational and operational costs, to enhance the credibility of product quality control, to make agricultural economic entities better organized, scaled up and industrialized, conduct market-oriented operation and management on agriculture, to enhance the production efficiency of agricultural products and their abilities to break technical barriers.

(2)

To strengthen the building of industrial organizations for the export of agricultural products. During the 11th Five-year period, we shall energetically develop various kinds of industrial boards of trade, associations and intermediary organizations for the export of agricultural products, quicken the industrial and organizational buildings for the export of agricultural products, establish and perfect industrial organizations and boards of trade for such key export products as aquatic and marine products, poultry products, vegetables, fruits etc., and conduct a self-management, self-service and self-supervision by enterprises themselves. We shall bring into full play the role of industrial organizations, make the industries better organized, regulate the order in the export of agricultural products, and actively respond to international trade disputes. We shall bring into full play the active roles of industrial associations in cooperation enhancement, industrial self-disciplining and speaking with one voice to the exterior. Enhancing mutual coordination and self-disciplining, the industrial associations shall conduct dialogues and negotiations on behalf of enterprises and governments, and make themselves play important roles in safeguarding the interests of enterprises, developing international markets, breaking technical barriers and settling trade disputes. With regard to the problems in the export of aquatic products, meats, vegetables, peanuts, fruits and other enormously-exported products, relevant governmental authorities shall actively take part in the relevant coordinative activities by industrial associations.

(3)

To energetically support and foster the exporters of agricultural products. We shall develop industrialized operations in agriculture, enhance the support to agricultural industrialized enterprises of various kinds of ownership and operational patterns, and encourage leading enterprises to give impetus to bases and farmers in multiple interest association modes. During the 11th Five-year period, we shall pay attention to bringing into play the radiant roles of leading enterprises and professional agricultural cooperative organizations. We shall foster, in the fields where China's agricultural products have comparative advantages, leading export enterprises of agricultural products characterized by strong industrial associations, high-level technological equipments, strong international competitiveness, large-sized exports, good economic performances, employment encouragement in rural areas and increasing income of farmers, energetically push forward the industrialized operation of agriculture, stress the development of processing of agricultural products, encourage enterprises to actively introduce in new technologies, new varieties, new techniques, and new equipments, and enhance the comprehensive quality of agriculture. We shall carry out "company plus base", "company plus base and plus farmer", "order-oriented agriculture" and other operational modes, and fully implement agricultural standards in production, processing and circulation by means of leading enterprises and professional agricultural cooperative organizations, so as to guide the market of agricultural products to develop towards regionalization, scalization, and professionalization.

5.

To Innovate the Policy Support System to Enlarge the Export of Agricultural Products

We shall do profound studies on WTO rules, draw lessons from the overseas successful experiences in supporting agricultural development, and perfect the export-supporting policy system for agricultural products. During the 11th Five-year period, we shall continue to probe into the fiscal, taxation, financial and insurance mechanisms to enlarge the export of advantageous agricultural products.

(1)

The foreign trade development funds of the Central Authorities shall give preferential treatment to the export of agricultural products so as to enhance the international competitiveness of agricultural products. We shall focus supports on the leading industrialized enterprises with strong export capacities and radiances to subsidize them to perfect the quality standard system for agricultural products, to obtain international certifications, to establish or redress export bases, to establish records of growing and breeding agricultural products and quality traceability system, and to conduct technological research and development and reformations.

(2)

To actively provide credit supports to eligible export enterprises of agricultural products. During the 11th Five-year period, we shall enhance the policy-related financial supports, study and formulate detailed measures to provide policy-related financial supports to the export of agricultural products, and quicken, targeting the characteristics of agricultural products, the studies and designs of financial products in line with the demands of the export enterprises of agricultural products. We shall extend the business scope of the Agricultural Development Bank, and enhance, upon the perfection of operational mechanisms, the credit supports to the export of agricultural products.

(3)

To continue to perfect the policy-related insurance system for the export of agricultural products. We shall probe into the risk-preventing mechanism combining the export credit insurance and agricultural insurance, extend the coverage of the credit insurance for the export of agricultural products, refine the relevant services, make the insurance cover more enterprises, and enhance the risk-preventing capacities of the export enterprises of agricultural products.

(4)

To perfect the taxation support policies. We shall do studies to regulate and unify the codes of processed agricultural products, readjust the structure of export rebate rates for agricultural products, and encourage enterprises to export deep-processed agricultural products. And appropriate preferential treatments in tariff reduction and exemption shall, according to the state's relevant provisions, be given to the import of production, processing, inspection and testing equipments and general-purpose equipments for self-use by export enterprises of agricultural products.

(5)

To reduce and exempt the inspection and quarantine costs for exported agricultural products, and to quicken the customs clearances. We shall improve the inspection and quarantine facilities for the export of agricultural products, increase export inspection checkpoints, improve the means of inspection and quarantine, shift gradually the inspection and control on products to control on the production process, and shift the inspection on batch to strengthened control on bases so as to reduce the inspection batches. During the 11th Five-year period, we shall, with reference to the overseas experiences, reduce and exempt the inspection and quarantine costs for the export of agricultural products, and reduce the export costs of enterprises. We shall formulate separate control methods for different products, establish databases for export enterprises, simplify the inspection and quarantine procedures for those faith-keeping export enterprises of high-quality agricultural products that have obtained HACCP, GMP, GAP, European Union Registration Certification, ISO9000, ISO14000 and other quality and environment certifications, give, upon the approvals from relevant authorities, inspection exemption or entrusted self-inspection to those eligible enterprises, and quicken the customs clearances for agricultural products especially fresh ones.

6.

To Enhance Negotiations with the Overseas and Create Sound International Environment

During the 11th Five-year period, we shall enhance the rapid reaction capacities of governmental authorities, strengthen the information communication mechanisms among different authorities, and enhance negotiations with the overseas.

(1)

We shall actively participate in the new round WTO talks, advance the liberalization of trades in agricultural products, so as to settle down the three main problems (market access, domestic protection, and export subsidy) in trades in agricultural products, to reduce the unfair competitions from other countries (regions), and to create a loose and fair competition environment for the export of China's agricultural products.

(2)

We shall quicken the negotiations on bilateral free trade agreements, advance negotiations on China-ASEAN, China-Australia and other free trade agreements and the economic and trade integrations with contiguous countries and regions, extend and consolidate the export markets for China's agricultural products, and establish bilateral negotiation mechanisms with the European Union, Japan, the United States, the ASEAN countries, Russia and other key markets, so as to help enterprises develop international markets.

(3)

We shall enhance negotiations with the overseas, eliminate conflicts and disputes to the maximum, create sound international market environment for the export of agricultural products, and actively build, together with all countries (regions), communication and negotiation mechanisms characterized by prioritization of nongovernmental organizations and combination of governmental and nongovernmental efforts.