Author: Stephanie Hoo
Publication: Dow Jones Newswires
Date: Tuesday, August 28, 2001

SHANGHAI -- A report in the China Daily`s Business Weekly Tuesday suggests that domestic oilseed users may switch to canola from soybeans unless Beijing soon clarifies its rules on genetically altered crops.

``We might shift part of our raw materials to canola if the government introduces severe restrictions on GMO imports,`` an unnamed Shenzhen-based processor said, according to the report.

The processor also warned that restrictions on GMO, or genetically modified organisms, in imported soybeans could force many Chinese oilseed crushers to close, the report said.

The bulk of soybeans grown in the U.S. and Argentina are genetically modified. Some traders say China`s confusing new rules on GMO safety have made them reluctant to import soybeans.

These traders say the rules, announced June 6, are too vague and leave too much to inspectors` discretion. The rules require GMO products to carry safety certification.

China`s chief trade negotiator Long Yongtu said last week that Beijing may allow traders a grace period while the rules are ironed out.

China`s Ministry of Agriculture last month warned in a report on its Web site that attempts to limit imports of GMO soybeans could drive up domestic prices, cause shortages, trigger trade disputes and become an obstacle to Beijing`s bid to join the World Trade Organization.