[Intl-tobacco] China Drops Ban on U.S. Tobacco leaf

[Robert Weissman]

China Drops Ban on U.S. Tobacco
Source: AP, Tuesday, 5/23/00
Tuesday, May 23, 2000; 6:46 p.m. EDT

WASHINGTON =96=96 China dropped an 11-year-old ban on the importation of
American tobacco Tuesday on the eve of the House vote on whether to grant
the Chinese permanent normal trade relations.

In a letter to the U.S. trade representative announcing the end of the
ban, Chinese Ambassador Li Zhaoxing said "such good news will be conducive
to the PNTR legislation in (the) U.S. Congress."

China had claimed that a fungus on U.S. tobacco called blue mold could
damage its domestic crop but had recently suspended research on the issue
after scientists concluded that the fungus could not reproduce once the
leaf is cured.

Supporters of the trade agreement have said that an end to the Chinese ban
could increase U.S. tobacco exports by 10 percent.

Under an agreement that the Clinton administration negotiated last year,
China is to drop its tariff on U.S. tobacco from 40 percent to 10 percent
and on cigarettes from 65 percent to 25 percent.

Several North Carolina lawmakers who represent large tobacco-growing
regions have been undecided on the China trade vote. The end of the
tobacco ban cemented a "yes" vote from Rep. Bob Etheridge, D-N.C.

"With this development there ain't no question," said spokesman Brad
Woodhouse.