Policies for Pesticides Get Stricter   

By Peter Zong    

The Ministry of Finance and the State Taxation Administration issued a notice on July 30th to eliminate the export rebates for more than 30 kinds of pesticides, effective August 1st, 2008. (CCR2008 No. 23) Two background factors were publicly considered to result in the notice.

A: Global pesticides production is shifting to China

Chinese pesticide companies have owned strong competitive edge globally in the production of active pesticides ingredients by means of their owned comprehensive advantages in matched feedstock, energy and water, labor cost, technical level and production facilities. China now is the biggest producer and exporter of pesticides worldwide. The developed countries, amid the pressures of environmental protection and production cost, has been shifting the pesticide production outside, mainly targeting to China. As a significant evidence, the pesticides exports of China has grown year by year since 1996.    

B: Exports threshold is lifted gradually

The trade of pesticide preparations is easy to cause disputes because of highly concerning with the health of human and animals and the safety of environment, therefore Chinese government has been stick to lift the exports threshold of pesticide preparations in recent years. Since 2005 the Ministry of Finance and the State Taxation Administration have jointly reduced the export rebates of partial pesticides for four times, according to the toxicity and the degree harming environment of pesticide. The pesticide exports of China dropped for the first time in 2006 by the affection of policies. However, drawn by the global industry shifting trend and the boosted demand for glyphosate worldwide, the growth rate of pesticide exports picked up in 2007.        
    The new policy this August aims to eliminate small pesticide companies with weak competitive edge and uncompleted environmental protection measures. It forces the companies to reduce the exports of pesticides with low added value, to develop new products with high added value and find out new growing profit point.  
   The pesticides involved in this policy including acephate, carbofuran methomyl, all are insecticides in common use, and have toxicity next to the five organophosphorus pesticides that have been banned to produce and use. Therefore the pesticides to be eliminated will always be those with high toxicity and pollution, available in the current market. In order to survive, pesticide manufacturers must constantly develop products with low toxicity and pollution.