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The deficit in trade of China's farm produce in the first three quarters was up 45 percent over last year to US$2.29 billion, according to statistics from the Ministry of Agriculture.

 

Imports rose 13.9 percent to US$24.4 billion while exports rose 11.4 percent to US$22.1 billion.

 

The total volume of farm produce in the period was up 12.7 percent.

 

The ministry attributed the rising deficit to export barriers and a lack of competitiveness among Chinese producers.

 

It said the deficit mainly concerned livestock products, soybean, and cotton.

 

The deficit in livestock products reached US$630 million in the January to September period, up 30.2 percent over 2005.

 

From January to September, Asia remained the largest market for China's farm produce exports, but China's market share tumbled.

 

Japan, the largest single overseas market for Chinese farm produce exports, implemented the Positive List System for Agricultural Chemical Residues on May 29 this year.

 

The new system, which imposes much stricter standards for agricultural product residues, directly affects Chinese exports.

 

China exported nearly US$8 billion worth of agricultural products to Japan in 2005.

 

(Xinhua News Agency November 22, 2006)