The Brazilian and Chinese governments have reached an agreement over Brazilian soy and soyoil exports, the Brazilian Ministry of Agriculture said in a statement Thursday, according to Dow Jones newswires.

Brazilian soy exporters are concerned about new regulations, which began in October 2004, that limit the amount of the solvent hexane allowed in soyoil to 100 parts per million, well below the industry standard of 600 ppm. This week, the Brazilian government sent a mission to China in an effort to resolve the issues concerning soy and soyoil exporters.

While Chinese authorities will continue to allow a maximum of 100 ppm of hexane in soyoil, the Chinese have indicated that they will accept up to 600 ppm, which is the Brazilian limit. The Chinese government is also willing to accept up to 0.2 parts per million of the fungicide Carboxin in Brazilian soy shipments.

Last year, the Chinese government embargoed several shipments of Brazilian soy after finding traces of Carboxin, prompting an estimated $1 billion in losses to soy exporters, according to the Agriculture Ministry.

Brazil's Ministry of Agriculture said Chinese officials had guaranteed that Brazilian exporters would "not have problems with the sale of soyoil" to China. The Chinese government has also agreed not to require Brazilian exporters to declare that they have knowledge of all Chinese legislation related to soy.