**General Trade Summary**

 

U.S. planting seed exports during the July-April periodtotaled 1,023,652 metric tons (exceeding 1.0 million tons for thefirst time ever) valued at $801.0 million, increases of 76 and 27percent, respectively, over the same period last year. Importsfor the period reached 193,444 tons valued at $305.8 million. 

Two seedkinds exceeded the $100 million level in exports,field corn and soybean seed. These two dominate the export trade,reaching $253.1 million or 32 percent of total exports. On theimport side, one seedkind is dominant, field corn seed at $74.8or 24 percent of total imports. Flower seed comes in a distantsecond in at $46.7 million. 

Mexico continued as the best export market for planting seeds,having reached 345,776 tons and $175.2 million, up 83 and 48percent, respectively, from a year earlier. Three other exportmarkets, Japan, Canada, and Italy are poised to possibly reachthe $100 million level. 

Canada led suppliers of planting seeds to the United States,shipping 114,958 tons, valued at $83.1 million, increases of 3and 16 percent, respectively. Once accounting for 40 to 60percent of the U.S. import market, Canada's dominance has beensteadily eroded by off season suppliers such as Chile. 

**Trade Outlook with Japan**

Exports by value to Japan may top $100 million this year but aproblem has developed which has already depressed U.S. exports ofone seedkind. Japan's outbreaks of E. Coli illnesses and itsinability to identify the source of the outbreaks is depressingU.S. exports of radish seeds to that market. 

In late summer 1996, an outbreak of E Coli O:157 occurred inJapan. A variety of domestic and foreign agricultural productswere scrutinized as possible origins of the deadly outbreak --including fresh vegetables, meat products and radish seed. TheJapanese Ministry of Health and Welfare (MHW) identified U.S.radish seeds as a possible source of the problem. Subsequentlaboratory testing (both in Japan and the United States) ofsamples from the U.S. radish seed lot revealed no contamination.No credible source of contamination has yet been determined. 

In February of this year, the first of several more scatteredoutbreaks occurred. Again, MHW strongly implicated U.S. radishseed. Four official U.S. regulatory or research entities joinedthe MHW to carefully test the radish seed. While the Japanesepress continued to publish numerous articles quoting MHWallegations and portraying U.S. radish seed as the source, U.S.authorities have concluded there is no basis for attributing theoutbreak to U.S. seed. MHW remains publicly committed to 100percent testing of the remaining several hundred kilograms ofradish seed remaining in Japan. 

U.S. radish seed exports to Japan have declined. Current datashow radish seed is behind in volume from the same period a yearago; 522 tons compared to 1,168. The cumulative data in thisreport marks the end of major shipping season for 1997 crops.Contracts for seed for the 1998 crops are now being negotiated.The U.S. seed trade is very concerned that the damage alreadyexperienced by radish seeds may be extended to other seedkinds inthe upcoming marketing year. 

Following are excerpts from U.S. Agricultural Attache reportsrecently received in FAS/Washington. Copies of the completereports may be obtained by contacting the Cotton, Oilseeds,Tobacco, and Seeds Division at the address, telephone or Faxnumber listed above. 

**Bulgaria (Report number BU7025)****:**Overall demand for planting seeds is expected to increase in1997. The liberalization of agricultural prices and the traderegime in July are expected to have a great impact on seedconsumption in the second half of 1997 while price stability andcontrol of inflation are seen as the primary factors in the firsthalf of the year. Parliament approved the Law on the Protectionof New Plant Varieties and Animal Breeds (October 1996) andRegulations for the Licensing of Production and Trade Entities ofSeeds and Planting Materials (May 1997). The changes are expectedto play an important role in the seeds' sector and are especiallyfavorable to foreign seed suppliers for protecting theircopyrights and legal interests. 

**Philippines (Report number RP7015)**:Under the Trade Related Aspects of Intellectual Property RightsAgreement of the World Trade Organization Agreement, thePhilippines should have an effective Plant Variety ProtectionSystem by January 1, 2000. According to industry sources, thePhilippine Plant Variety Protection Act (House Bill 7951; SenateBill 1777) is tailored after the UPOV (Union for the Protectionof Varieties of Plants) Convention of 1978 with an addedrequirement covering genetically modified organisms (GMO's). Thebill requires an Environmental Impact Assessment for GMOvarieties to be eligible for protection under the law. 

| **Data tables** | **Exports** | **Imports** |
|-----------------|-------------|-------------|

----

*For more information contact Loyd Coonrod, Cotton, Tobacco and Seeds Division, FAS at (202) 720-9491.*

 

|                                      |
|-------------------------------------------|
| *Last modified: Wednesday, June 24, 1998* |