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"Forum on Promotion of Agricultural Products Exports By Export Credit Insurance" Held in Beijing
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"Forum on Promotion of Agricultural Products Exports By Export Credit Insurance" was held on May 12 in Beijing, It is sponsored by Ministry of Commerce and supported by China Export & Credit Insurance Corporation. State Development Planning Commission, Ministry of Finance, Ministry of Agriculture, part of financial institutes, agencies and organizations attended the forum, Provincial departments of commerce in Shandong and Guangdong and several main agricultural produce export enterprises also took part in it.

Yu Guangzhou, Vice Minister of Commerce attended the forum and gave a speech. He said that China was a big country in foreign trade, agriculture was predominant in imports and exports. According to Food and Agriculture Organization of the United Nations, China was ranked N.o 6 in 2002 in exports of agricultural products in the world. Total exports of agricultural products in the first quarter in 2004 amounted to US$5.12 billion in spite of the impact of Bird Flu after the record break-through of US$200 billion in 2003 for the first time, up by 14.3% compared with the same period of 2003. Aquatic products and garden products owned more competitive advantages. Price of agricultural products was rising, and private enterprises were new sources of exports. But on the other hand, exports of agricultural products showed a negative tendency. Firstly, unfavorable environment of international competition, technical trade barrier and other trade barriers were the main obstacles of exports; Secondly, some problems of China's agricultural products such as quality and safety of agricultural products were expected to be further settled down, agricultural produce exports enterprises were in small scales, with weak strength and lack of International Competitiveness, not in a position to cope with export risks and technical trade barriers and dispersed organizationally. Bides, rise of price of grain and oil drove up production cost, therefore, competition in exports were seriously affected.

Yu Guangzhou pointed out that we should viewed the exports of agricultural products in several aspects, which were integration between domestic and foreign trade, plan of open up and domestic development. exports of agricultural products directly serve the interests of solution of "three agricultural issues ", which were of much significance in increasing income of farmers and jobs, promoting structure adjustment of agriculture and improving competition of China's agricultural products. So, we should be in line with the requirements of plan to set up the export target of agricultural products, and should actively push exports of agricultural products in 5 aspects, ie. enhance the safety management of agricultural products, adjust export structure, explore international market, perfect the capital support policy of agricultural products and provide better trading environment.

Yu Guangzhou expressed that it was one of main tasks of MOFCOM to expand exports of agricultural products through export credit insurance. Export credit insurance was an effective and regular measure to avoid risks worldwide and was an important financial tool for governments to support exports on policy. In recent years, it was very common for China's exports of agricultural products to suffer from severe losses caused by technological trade barriers. The losses would be transmitted to production and processing, which was inevitably affected the income of farmers. In 2003, in view of features of high risks of exports of agricultural products and low capacity of fighting back risks of export enterprises, export credit insurance companies put forward special insurance for exports of agricultural products. During the periods of Japan's block of Chinese poultry imports in 2003 and "Bird Flu" at the beginning of 2004, the insured enterprises were compensated to transfer the risk and reduce the losses. But the function of export credit insurance on exports of agricultural products was not recognized commonly, meanwhile, the sense of prevention of risks among export enterprises of agricultural products was little, governmental publication was not to the point. In order to perfect the system of export of agricultural products, relative departments were researching and working out policies and measures. China Export and Credit Insurance Company should enhance its service, benefit enterprises and farmers, put forward some specific measures to enlarge the scale of insurance coverage of agricultural products and provide new insurance sorts to reduce the burden of enterprises.

At last, Yu Guangzhou pointed out that aim of the Forum was to "transform concept, form consensus, integrate resource and make functions of advantages", assist in "country, farmer and agriculture", establish the promotion platform for export credit insurance of agricultural products and expedite the promotion and popularization. He required departments of commerce of all levels to be earnest to fulfill the spirit of Document No.1, taking the establishment of platform of export credit insurance as the point of breakthrough and actively pushing the export of agricultural products; demanded to all participating enterprises to enhance the sense of preventing risks and set up an effective system of prevention of risks, hoping that the insurance company could put forward more preferential insurance policy on exports of agricultural products.

(Information by Network Center of MOFCOM)

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