Probe into foreign trade barrier begins
By Dai Yan (China Daily)
Updated: 2004-04-22 08:33

The Ministry of Commerce is set to start its first investigation on foreign trade barriers today after accepting a request by local laver producers.

The investigation was filed on February 25 by the Jiangsu Provincial Laver Association, which asked the ministry to investigate the legitimacy of Japanese management on laver imports. Laver is edible seaweed.

The inquiry will run for six months and can be extended for another three months.

It is the first such investigation in China since the Ministry of Foreign Trade and Economic Co-operation, which merged with the Ministry of Commerce last March, issued a temporary rule on investigations into other countries' trade barriers in September 2002.

If it is decided that barriers do exist, the ministry will solve the problem through bilateral negotiations or submitting the matter to the multilateral dispute settlement body under the World Trade Organization.

The report will be published to make it more transparent.

Wang Tingzhu, vice-chairman of the Jiangsu Provincial Association of Laver, which represents 107 members, welcomed the ministry's decision, saying the discriminatory Japanese practice can no longer be tolerated.

"We have been barred from exporting to Japan for years because Japan only gives import quotas to laver from South Korea," Wang said.

The trade of laver, a major element in Japanese food, is controlled by a Japanese quota system. It is the largest consumer of laver in the world.

Wang said Japan's stance is hard to understand as China's laver is similar in quality and production methods to South Korea's product.

Members of the association produce more than half of the laver in China.

Shen Sibao, a trade expert from the University of International Business and Economics, said the investigation will help China improve its trade environment as its products face increasing barriers globally.

China is pursuing a more aggressive stance in trade, rather than being dictated to by others, Shen said.

It is also illustrated by the Foreign Trade Law, which was revised this month.

The revised version added a new chapter about investigating alleged unfair trade practices, Shen said.

Local industries may file more applications to investigate the legitimacy of rising trade barriers, Shen said.

"The first investigation, although about a year after the issued rule on the investigation, will assist other industries suffering from rising trade barriers," she said.

Trade barriers often include technical standards, quarantine and quality inspection measures, intellectual property rights and customs procedures.

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