SHANGHAI (March 20 2003) : China's Agriculture Ministry said on Wednesdayit has issued eagerly awaited permits for imports of Brazilian soyabeans,resolving a thorny issue which briefly hampered bilateral trade worthabout $600 million.

"We have issued the permits and will give out permits to firms that fulfilour application criteria," said an official at the ministry's GMO(genetically modified organisms) office, declining to provide details.

Brazilian beans initially had problems entering China because Brazil doesnot admit it has transgenic crops, although it is known that some of itssoyabeans are bio-engineered.

Brazil, the world's second largest producer of soyabeans with China itsbiggest buyer, is loading the oilseeds at its ports as its soyabean seasonbegins.

The first soyabean shipments are expected to arrive in China in April.

"We received the permits today," said a trader at an international tradingfirm in Shanghai.

"The soyabeans, being loaded in Brazilian ports now, should arrive ontime."

China began accepting applications for the licences early in Februaryunder the latest rules on imports of transgenic crops.

It implemented GMO rules in June 2001 that hampered soyabean trade withtop producers, such as the United States, Brazil and Argentina, worthabout $2.8 billion annually.

The rules required soyabean suppliers to go through a time-consumingprocess in applying for import permits.

But following an outcry from some soyabean exporting countries, thegovernment then implemented a temporary measure that mandated a simplerprocedure.

The measure was originally due to expire on December 20, 2002, but wasextended for nine months to September 2003 to ensure trade would not bedisrupted.- Reuters