China: New grain tariffs in 2008

This represents the latest move to discourage exporting grain abroad as
domestic grain prices soar. Importers of Chinese grains, however, may be forced
to source supplies elsewhere in countries such as the US, Brazil and Argentina.

As of Wednesday this week, tariffs of 20% will be placed on exports of
wheat, buckwheat, barley and oats. A 25% tariff will be applied to wheat flour
and starch exports. For exports of corn, rice, soybeans, sorghum and millet, a
lower tariff of 5% is to be imposed.

Exports of corn and wheat were
suspended in mid-2007 amid fears that domestic grain output would not cover
domestic consumption.

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