Safety fears could jar trade with China: USTR

WASHINGTON (Reuters) - The Bush administration is working to ensure that American consumers' mounting worries about the safety of imports do not jar trade with China, a top U.S. trade official said on Tuesday.

"If American consumers believe that goods coming from any part of the world are not safe, it will have an unfortunate effect on trade, so it's important that we work with our trading partners, China and others," Deputy U.S. Trade Representative Karan Bhatia told reporters.

In recent months, reports of dangerous products from China, from toys to toothpaste to seafood, have ignited concern among Americans and caused them to examine the goods they buy.

"We recognize the significance of the problem. There is a process going forward," Bhatia said, citing a broad panel set up last week to review import rules.

The new panel, headed by Health and Human Services Secretary Michael Leavitt, is due to provide recommendations in 60 days to President George W. Bush on how to improve U.S. screening and response when problems arise.

It is a gargantuan task, with inspectors already stretched and a record $1.9 trillion in foreign goods pouring into the United States in 2006. Some in Congress want to see a fee on foreign food imports to fund stepped-up inspection.

Beijing has moved to crack down on unscrupulous exporters, and at least several export licenses of some businesses. But it also has decried "groundless smear attacks" against its products.

Bhatia -- in keeping with the administration -- appeared reluctant to single out China, the United States' second-biggest trading partner and fourth-biggest export market, or to escalate the rhetoric over the issue.

"It is important that the measures that we take are targeted," he said.