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Import Safety Agreements with the Chinese Government

Under assignment from President Bush, I have devoted considerable time and a lot of HHS resources over the past six months to an Import Safety Working Group. I was chairman of the 12-person group which represented all the relevant parts of the U.S. government.

The working groups concluded that our country has a good system of import safety, but it is inadequate for the future. In September, we laid out a strategic framework for the future. In November, we issued an implementation plan with 50 specific recommendations in 14 different categories.

Throughout the period of our work, Chinese products have been under substantial media scrutiny because of a series of negative incidents involving their pet food, aquaculture products, tooth paste and toys with lead paint. It was evident to both our countries that these events were warning signs that required a policy response.

In the summer of 2007, I began working with Chinese officials to develop binding memorandums of agreement on how we can work together to assure their products meet U.S. standards. I asked Andy von Eschenbach, Commissioner of the FDA, to assemble a technical team. I assigned my Chief of Staff, Rich McKeown, to represent me in the negotiations. Vice Premier Wu Yi of the Chinese government received a similar assignment from President Hu to organize a team.

The work between the Chinese and American negotiating teams spanned six months and involved four different rounds of meetings. They were rigorous and spirited. However, in the end, two agreements were produced. One agreement is on food and animal feed. The second is focused on drugs and medical devices. I believe these two agreements contain a framework which will have a profound impact not just on the importing relationships between the U.S and China, but also on the relationships we have with other nations.

I want to enumerate five of the many important conclusions I have reached during this period.

Lesson 1: The import safety problem is the natural consequence of a maturing of the global marketplace. These issues have been slowly ripening for several years now. It is a direct reflection of the profound growth in the amount of trade between nations. Our systems are not designed for the pressure they are under. We are inventing tools to deal with new problems. Scaling the old way up is an inadequate response.

Lesson 2: Collaboration is necessary within governments as well as between governments. Different countries have different systems of government and different views of import challenges and priorities. Likewise, different parts of governments see import safety with different perspectives. For example, a border protection agent views this as a law enforcement challenge. A public health official sees it as a health problem and, naturally, a trade negotiator wants to know how it will affect commerce.

Lesson 3: Different perspectives, economic systems and regulatory regimes must be bridged by common goals, international standards and interoperable systems. The standardization of cargo containers across the world is a proper metaphor. By adopting standard-sized containers, the shipping community has made it possible for cargo to be handled efficiently in any nation. There is no substitute for the hard, messy work of collaboration in developing them.

Lesson 4: Transparency is trust’s seed. In a global market, speed is life. Anything that slows the flow of goods down, including unnecessary inspections, damages competitiveness. Competitiveness and safety can co-exist only when one knows who to trust. Transparency brings trust; trust brings speed; speed wins in a global market.

Lesson 5: Continuous improvement is necessary. The agreements we signed with the Chinese are frameworks and will require continued work at many layers of government and industry. There is a Chinese saying, “A man who would move a mountain starts by moving small stones.”

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Mr. Secretary,

This is really good news. Thank you for working diligently on this issue. It is so much better when we all strive to improve our systems, certainly there is always room for improvement.

“Success isn't how far you got, but the distance you traveled from where you started” Greek Proverb

Again,
Thank you

...and Happy New Year!

Posted by: standingfirm | January 03, 2008 at 05:46 PM

Really liked your take on the subject. The links look good and useful, too.
Thanks!

Posted by: Kelly | January 04, 2008 at 01:15 AM

SECURE

DEAR SIR

I AM REALLY GLAD TO HAVE UR ESTEEMED GLOBAL MAILS AND REALLY WE ARE FACING A GREAT PROBLEM TO CHOSE OR KNOW THE RIGHT TRUSTFUL, CAPABLE AND QUALIFIED EXPORTING COMPANIES AMONG THIS INTERNET UNCONTROLLED RUSHING OF MASSAGES FROM EVERY WHERE AND IN FACT WE HAVE NO GUARANTEE AT ALL WITH ALL OF THESE UN CONFIDENTIAL AND UN KNOWN DEALS? AND WE ARE WONDERING IF UR ESTEEMED GLOBAL COULD
GUIDE US TO A SECURING TRADE OBSERVER COMPANIES AND WORKING AS AN EYEWITNESS COMPANIES COULD ACT IN BETWEEN A TWO COMPANIES (( IN ANY DEALS AND CONTRACTS)) FOR EXAMPLE EXPORTING OR BUYING A FACTORY)) ETC)).

ARE THERE ANY SUCH AN OVERSEAS COMPANIES WORKING BETWEEN THE TWO PARTIES TO WATCH WORK HAS BEEN DONE IN THE RIGHT WAY & MAKE ITS OWN INVESTIGATE TO SEE EVERY THING IS ALRIGHT BY TAKING SOME PERCENTAGES.
THAT IS WHEY WE ARE ASKING FOR AT LEST 1% AS BG GUARANTEE FROM THE TOTAL CONTRACT VALUE AT ONCE?

TAREQ ADAM ABBAS

MST.GROUP
TRADE MANAGER
FAG ATTAN BEHIND AZAL UNIVERSITY

00967 700008729

Posted by: TAREQ ADAM ABBAS | March 16, 2008 at 03:25 AM

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