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ASA seeks end to soybean trade restrictions

By Laura Crowley, 05-Mar-2008

Related topics: Financial & Industry, Proteins, non-dairy

The American Soybean Association (ASA) is calling for improved international market access for soybeans and European acceptance of biotechnology to enable freer trade.

Delegates of the ASA, which represents some 22,000 soybean growers, met on Saturday in its annual process to revise and review its policy direction for 2008 to 2009.

The main challenges facing the industry and profitability were found to be enabling easier trade, overcoming the damaging effects of the farm bill, achieving sustainable production, embracing the use of biodiesels and the group's organizational issues.

Trade

According to the ASA, 50 percent of US soy production is exported to overseas customers, and therefore trade is an extremely important issue for soybean producers.

It said: "ASA strongly supports Congressional passage of the Colombia, Panama and South Korea Free Trade Agreements, and strongly opposes any product exclusions from Free Trade Agreements on the grounds that they serve as negative precedents for countries seeking to exclude soy or livestock products."

Additionally, the group said it wants to see improved market accessfor soybeans and soybeans products, which it agrees such be a top priority for the Doha Development round under the World Health Organization (WHO).

Regarding Europe, the ASA said it supported "an expedited process for approval and acceptance of biotechnology products in the European Union".

In January, the ASA warned of retaliation on Europe if the bloc does not speed up a system for approving GM crops.

At the moment, industry has been loosing millions because producers who use GM crops are restricted in exporting them to the EU, because of a bans in member states, such as France and Austria, on the use of GM crops.

Following a complaint by the US in 2003, the World Trade Organisation (WTO) ruled that some European countries were breaking international trade rules by stopping the import of GM foods and crops.

The EU has still not complied with this ruling and the bans have reduced US exports of bulk commodities such as corn and soybeans into Europe.

Sustainable production

Sustainability appeared to be a great concern for the ASA. To achieve production methods that are both sustainable and meet the growing food, feed and fuel demand, the voting delegates agreed their support for biotechnology, commercial fertilizer and commercial crop protection products.

It said it "believes that any definition of 'sustainable agriculture' include the use of these products."

It added: "ASA supports full disclosure of all information concerning germination, vigor and quality, and strongly encourages all companies to enter their varieties in independent university variety trials."

It also supports the permanent extension of the biodiesel tax incentive at existing levels, and the authorization of a bioenergy program in 2008.

Farm policy

The ASA is against the new version of the farm bill proposed last month, saying it is damaging for soybean and corn farmers as well as biodiesel producers.

The new suggestions apply stricter limits on farmer subsidiaries and slash extra spending for farm programs and conservation over a 10-year period.

In developing the direction for this year's policy, the ASA said it opposed the proposals. It said the farm bill "would undermine the safety net provided by the marketing loan in times of low prices, result in lower harvest-time prices since producers would have less incentive to store their crop in anticipation of higher prices during the marketing season, and disadvantage soybean, feed grain and wheat producers relative to cotton and rice producers".

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