News Content

US grain export association urges China to withdraw GMO restriction

THE largest grain export association in the US is urging China to withdraw its latest restriction of a GMO corn strain, slamming the move for being impractical.

Trade sources said China issued the new requirement affecting distiller's dried grains (DDG), a popular livestock feed that is a by-product of corn ethanol manufacturing, reported Reuters.

Traders say China is demanding certification that DDG imports do not contain the MIR 162 GMO strain. Grain traders say Washington does not issue zero tolerance certification.

"China is asking for something that cannot be done. This certificate that they're asking for does not exist," said president and chief executive officer of the US Grains Council Tom Sleight.

Mr Sleight said China had also made the new requirements effective immediately, causing serious disruptions.

All DDG shipments departing from July 24 that do not meet the certification requirement will be rejected, the North American Export Grain Association told members in a note on Thursday, traders said.

"It's time for China to look at and approve this trait," Mr Sleight said. "Lack of approval of MIR 162 is becoming an undue impediment on trade."

Mr Sleight said the strain has been approved in the United States since 2010 and is approved in all other importing countries but China, including the European Union, which has strict GMO rules.

China stopped issuing import permits for US DDG shipments in June over fears about the MIR 162 GMO strain, which is not approved by the Agriculture Ministry.

The United States exported 2.31 million tonnes of DDGs to China from January to May with total US exports in the period at a record 4.996 million tonnes, according to US Department of Agriculture data.

The US Grains Council also would have to "discontinue its role as the agent for US ethanol companies in submitting registration dossiers" to China's Ministry of Agriculture because of the new requirement.

Also in contention are China's new regulations on registering US ethanol plants that aim to export DDGs, the council said in a letter to members seen by Reuters.