US, China set farm discusson for Xi visit to Iowa

WASHINGTON | Thu Feb 9, 2012 5:32pm EST

WASHINGTON Feb 9 (Reuters) - U.S. and Chinese officials will discuss agricultural trade issues next week in Iowa during China's Vice President Xi Jinping's visit to the premiere corn and soybean-producing state, the U.S. Department of Agriculture said on Thursday.

China became the No. 1 customer for U.S. farm exports last year with purchases of $20 billion, or 14 percent of all ag exports. China is the world's largest importer of soybeans and cotton. Analysts say it could become a major corn buyer in the near term.

There are hopes the visit by Xi will bring additional purchases. The first U.S.-China Agricultural Symposium, set for Thursday in Des Moines, is to discuss food safety, food security and sustainable agriculture but also could air trade disputes.

The United States says China puts unfairly high tariffs on U.S. chicken parts and it wants China to relax beef import restrictions imposed as a safeguard against "mad cow" disease.

The symposium is an outgrowth of meetings last November when Agriculture Secretary Tom Vilsack visited China. Xi will visit Iowa as well as California and Washington, DC, during his visit.

"I'm honored to welcome China's Vice President Xi Jinping and Minister of Agriculture Han Changfu to the United States, where we may continue our in-depth dialogue on issues of mutual concern," said Vilsack in announcing the symposium.

Besides meat trade, officials could discuss synchronization of standards for agricultural biotechnology, a topic in the November meeting. The United States also wants to assure fair market access for apples and pears.

U.S. farm exports to China are forecast at $17 billion this fiscal year, due to lower market prices and larger world supplies. Imports of Chinese agricultural goods are forecast by the Agriculture Department for $4.6 billion this year, up from $3.9 billion in fiscal 2011, which end on Sept. 30. (Reporting By Charles Abbott; Editing by Marguerita Choy)

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