VIETNAM, April 6, 2004 -- Vietnam is a major importer of soybean meal (about 900,000 metric tons) and vegetable oil (about 300,000 mt). Although 2004 imports may dip due to livestock production problems, Vietnam is now one of the largest Asian importers of oilseed products.

BULGARIA, April 6, 2004 -- In 2004, Bulgaria will increase its domestic agricultural support and for the first time ever will introduce export subsidies for non-EU markets. Export subsidies will cover chicken meat and eggs; lamb/sheep meat; dairy products; and fresh and processed fruits and vegetables. The EU enjoys an increasing trade preferences which puts the U.S. exporters in disadvantaged position

SRI LANKA, April 6, 2004 -- Sri Lanka's MY 2004/05 rice production is forecast at two million tons, assuming favorable weather conditions. MY 2003/04 production was revised downward to 1.8 million tons, due to dry weather conditions during the ongoing maha season. Wheat imports in CY 2004 are forecast at 950,000 metric tons, with no likely improvement in US market share.

EUROPEAN UNION, April 6, 2004 -- Suspicions were raised by European Members of Parliament about subsidies on cattle exported from the EU to the Middle East. In 2002 about 90 percent of the live cattle exported from the EU went to Lebanon. Suspicions are this was not the final destination. Members of Parliament are now pushing for an OLAF investigation.

KOREA, REPUBLIC OF, April 6, 2004 -- Korea is expected to shift from Chinese to U. S. suppliers for the bulk of the 9.3 MMT of corn imports projected for MY 2004/05. Rice negotiations ending in 2004 will lead to additional rice imports and improved market access conditions in 2005. MY 2004/05 wheat imports are expected to rise to 3.3 MMT on the basis of additional feed wheat imports.

EUROPEAN UNION, April 6, 2004 -- The recent crises in the European pig meat sector, was tackled by the European Commission by the introduction of export refunds in January 2004. Since the major crises now seems to be over and the prices of pig meat have recovered, the Commission closed the export refunds on March 16 of this year. The refunds had then aided shipments of 70,000-75,000 tons of pig meat with a value of 20-25 million Euros.

HUNGARY, April 6, 2004 -- Report Highlights: After the very low grain harvest in 2003, Hungary's grain trade is small. The upcoming EU accession will not result in major changes in the growing pattern. Normal weather points to an average crop in 2004. Contracting animal production will result in higher wheat and corn exports in 2004/2005. Hungary strictly follows EU biotechnology regulations, and it is expected that biotech varieties will not be introduced in the next few years.

KAZAKHSTAN, REPUBLIC OF, April 6, 2004 -- Kazakhstan's MY2004/05 wheat production forecast is at 11.5 million metric tons (MMT), assuming normal weather conditions. MY 2004/05 wheat exports are forecast to decrease to 5.5 MMT due to anticipated average yields and lower ending stocks.

UKRAINE, April 6, 2004 -- Ukraine's 2004 grain and pulse production will increase by an estimated 40% as compared with 2003 - the worst grain crop on record. Ukraine is expected to regain status as a net wheat exporter MY 2004/2005 as both wheat and barley exports are forecast to rise over the current marketing year. Wheat trade will likely be constrained by GOU strategic reserve and intervention purchases and the general need to replenish diminished stocks. GOU purchases should not affect barley exports. Human and feed grain consumption in MY 2004/2004 will likely increase but will remain well below MY 2002/2003 levels due to reduced demand.

MEXICO, April 6, 2004 -- *KELLOGS TO ADD A THIRD PRODUCTION FACILITY IN MEXICO *ANTAD 2004 RESULTS: US$13 MILLION IN PROJECTED ANNUAL SALES FOR U.S. COMPANIES *THE EVALUATION OF THE AGRICULTURE NAFTA CHAPTER STILL PENDING *HORTICULTURAL EXPORTS FROM MICHOACAN INCREASE *GOM AGREEMENTS ON DRY BEAN PRODUCTION; A BACKWARD MOVEMENT *FARMERS CELEBRATE LOCAL ALTERNATIVES TO U.S. CORN *JAPAN CAUTIOUS OF MEXICAN IMPORTS OF U.S. BEEF

CHILE, April 6, 2004 -- Lower sugar prices and expected expansion of imports due to a significant increase in duty free quotas, sugar beet planted area and production will expand only modestly in MY2004/2005.

JAPAN, April 6, 2004 -- The Japanese Ministry of Agriculture, Forestry and Fisheries has announced a plan to amend the current Seed and Seedling Act. The amendment will likely expand the list of "Designated Seeds and Seedlings" and increase labeling requirements. This early opportunity for comment closes February 5, 2004. There will be a second opportunity under World Trade Organization (WTO) auspices.

THAILAND, April 6, 2004 -- The key developments in Thai agricultural trade policy in 2003 are: 1) Tariff reduction for agricultural products and processed foods, including wheat, wheat flour, and peas and lentils; 2) Thai FDA's enforcement of requirements for the Good Manufacturing Practice (GMP); 3) The Thai Royal Government's import ban and a recall action on U.S. beef immediately when finding of a BSE case was reported in late December, 2003; and 4) Thailand's progress in free trade area negotiations particularly with China and Australia. Thai-U.S. Free Trade Agreement is the first-priority FTA negotiations for the RTG in 2004. International trade policies on agricultural products and processed foods may not change much from those in 2003 until an FTA is in place.