China and Brazil expect a costly dispute over soya imports to be resolved in upcoming talks, Brazil's president said on Friday after receiving a message from his Chinese counterpart.
In the message to Brazilian President Luiz Inacio Lula da Silva, Chinese President Hu Jintao said he expected Brazilian officials visiting his nation to resolve the dispute over soya contamination levels.
"The question of soya trade can be resolved appropriately through friendly talks between the two nations' relevant authorities," Hu said in the message, Lula's spokesman told reporters.
Brazil, the world's second-largest soya producer after the United States, said this week it expected a solution after it adopted more rigorous contamination controls.
Brazil's soya producers, among the biggest in the world, say the dispute has cost them $1 billion since China discovered fungicide-contaminated seeds in April.
China blacklisted 23 Brazilian soya shippers, saying it found some cargoes contaminated with the harmful fungicide known as carboxin. The ban effectively suspended soya trade between the countries.
China expects Brazilian officials to "hold negotiations with Chinese authorities to resolve the soya trade problem," Hu said in the message, according to spokesman Andre Singer.
Brazil was optimistic about resuming soya exports to the world's top buyer.
"After this message from the Chinese president we have a high expectation our mission will be able to quickly resolve the problem," Singer said.
Brazilian soya producers this week threatened to go to the World Trade Organisation to challenge China's ban.