If present international trading trends continue the European Union (EU) will see its agriculture exports to China exceed 2 billion euros within five years, an EU representative has said.?

As its economy continues to develop China's urban middle class will grow from 120 million to 150 million in five years which bodes well for the burgeoning agricultural trade between the two sides, said Raimondo Serra, Agricultural Counselor with the Delegation of the European Commission in China.

The EU's agriculture exports are likely to hit 4 billion euros when China's urban middle class reaches 200 to 250 million, said Serra at a forum during the "Sino-Italian Green Week" which runs from July 3-6.

As more Chinese people became increasingly affluent their tastes often adjusted to include western-style foods and this brought significant opportunities for EU agricultural trade with China, Serra said.

"China, however, can produce most products and has a comparative advantage in labor-intensive crop farming," he said. China's production of garlic, mushrooms, tomato paste and frozen strawberries could put a lot of pressure on the EU, said Serra.?

"But the EU can't just build a defensive strategy," he observed.?

China, which is short of land and water resources, has production limitations and the country has been a net food importer since 2003.

"The EU has opportunities in China especially in value-added products," Serra said. "In an environment of relatively low tariffs we have to be more offensively minded."

(Xinhua News Agency July 6, 2006)