IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/793.html
   My bibliography  Save this paper

China: Shadow WTO agricultural domestic support notifications

Author

Listed:
  • Cheng, Fuzhi

Abstract

"This paper reviews recent agricultural policy changes in China and presents estimates of domestic support for the period 1996-2005. A set of relevant alternative subsidy-definition scenarios and their effects on the calculated levels of support are analyzed, and a projection of domestic support through 2013 is presented. The paper concludes with a discussion of new WTO rules that may be negotiated in the Doha Round and their implications for China. Based on standard WTO subsidy calculation methods, our results indicated that China's domestic support for the period 1996-2005 has been well below the limits agreed at its WTO accession. The market price support (MPS) component of the aggregate measure of support (AMS) in China has been below zero, and this has dwarfed the relatively small but positive non-product specific AMS and led to a zero current total AMS after de minimis. China has no AMS commitments but can provide trade-distorting domestic support to agricultural producers up to 8.5 percent of the value of production (or RMB561 billion). Thus there appears to be substantial room for China to extend its amber box subsidy measures through heavy use of the de minimis provision. We project domestic support notifications through 2013 based on specified assumptions about domestic policies, including changes in administered prices and commodity program coverage. New rules potentially negotiated in the Doha Round are expected to provide more constraints on subsidies. Due to China's developing country status, with no AMS commitments under the Uruguay Round Agreement on Agriculture the impacts of these new constraints are shown to be limited, although our projections indicate that China may exceed its WTO commitment levels under certain price and commodity coverage scenarios." from authors' abstract

Suggested Citation

  • Cheng, Fuzhi, 2008. "China: Shadow WTO agricultural domestic support notifications," IFPRI discussion papers 793, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:793
    as

    Download full text from publisher

    File URL: https://www.ifpri.org/cdmref/p15738coll2/id/13224/filename/13225.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Huang, Jikun & Rozelle, Scott & Martin, William J. & Liu, Yu, 2007. "Distortions to Agricultural Incentives in China," Agricultural Distortions Working Paper Series 48478, World Bank.
    2. Shenggen Fan & Connie Chan‐Kang, 2005. "Is small beautiful? Farm size, productivity, and poverty in Asian agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 135-146, January.
    3. Will Martin, 2001. "Implications of reform and WTO accession for China’ agricultural policies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(3), pages 717-742, November.
    4. Fuzhi Cheng & David Orden, 2007. "Exchange rate alignment and producer support estimates (PSEs) for India," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 233-243, March.
    5. Morris Goldstein, 2007. "A (Lack of) Progress Report on China's Exchange Rate Policies," Working Paper Series WP07-5, Peterson Institute for International Economics.
    6. Dermot J. Hayes & Frank H. Fuller, 1999. "Optimal Chinese Agricultural Trade Patterns under the Laws of Comparative Advantage," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 99-wp233, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    7. Fangbin Qiao & Bryan Lohmar & Jikun Huang & Scott Rozelle & Linxiu Zhang, 2003. "Producer Benefits from Input Market and Trade Liberalization: The Case of Fertilizer in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1223-1227.
    8. Chang, Gene H., 2002. "The cause and cure of China's widening income disparity," China Economic Review, Elsevier, vol. 13(4), pages 335-340, December.
    9. Carter, Colin A. & Li, Xianghong, 1999. "Economic Reform And The Changing Pattern Of China'S Agricultural Trade," Working Papers 11957, University of California, Davis, Department of Agricultural and Resource Economics.
    10. Unknown, 2003. "Decoupled Payments: Household Income Transfers In Contemporary U.S. Agriculture," Agricultural Economic Reports 34057, United States Department of Agriculture, Economic Research Service.
    11. Cheng Fang & John C. Beghin, 2000. "Food Self-Sufficiency, Comparative Advantage, and Agricultural Trade: A Policy Analysis Matrix for Chinese Agriculture," Center for Agricultural and Rural Development (CARD) Publications 99-wp223, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    12. Jeffrey Frankel, 2006. "On the Yuan: The Choice between Adjustment under a Fixed Exchange Rate and Adjustment under a Flexible Rate," CESifo Economic Studies, CESifo Group, vol. 52(2), pages 246-275, June.
    13. Kwiecinski, Andrzej & van Tongeren, Frank W., 2007. "Quantitative Evaluation of Agricultural Policy Reforms in China: 1993-2005," 2007: China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55028, International Agricultural Trade Research Consortium.
    14. Barry K. Goodwin & Ashok K. Mishra, 2006. "Are “Decoupled” Farm Program Payments Really Decoupled? An Empirical Evaluation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 73-89.
    15. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications - Books, The World Bank Group, number 2611, December.
    16. Huang,Yiping, 1998. "Agricultural Reform in China," Cambridge Books, Cambridge University Press, number 9780521620550.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wusheng Yu & Hans G. Jensen, 2010. "China’s Agricultural Policy Transition: Impacts of Recent Reforms and Future Scenarios," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 343-368, June.
    2. repec:wyi:journl:002171 is not listed on IDEAS
    3. Meng, Lei, 2012. "Can grain subsidies impede rural–urban migration in hinterland China? Evidence from field surveys," China Economic Review, Elsevier, vol. 23(3), pages 729-741.
    4. Zhao, Jing & Miller, J. Isaac & Binfield, Julian & Thompson, Wyatt, 2022. "Modeling and Forecasting Agricultural Commodity Support in the Developing Countries," Commissioned Papers 321785, International Agricultural Trade Research Consortium.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kym Anderson & Ernesto Valenzuela, 2021. "What impact are subsidies and trade barriers abroad having on Australasian and Brazilian agriculture?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 265-290, April.
    2. Anderson, Kym & Huang, Jikun & Ianchovichina, Elena, 2004. "Will China's WTO accession worsen farm household incomes?," China Economic Review, Elsevier, vol. 15(4), pages 443-456.
    3. Andrius Kazukauskas & Carol Newman & Johannes Sauer, 2014. "The impact of decoupled subsidies on productivity in agriculture: a cross-country analysis using microdata," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 327-336, May.
    4. Jikun Huang & Yu Liu & Will Martin & Scott Rozelle, 2010. "Agricultural Trade Reform and Rural Prosperity: Lessons from China," NBER Chapters, in: China's Growing Role in World Trade, pages 397-423, National Bureau of Economic Research, Inc.
    5. Jinzhao Chen, 2015. "Interprovincial Competitiveness and Economic Growth: Evidence from Chinese Provincial Data (1992–2008)," Pacific Economic Review, Wiley Blackwell, vol. 20(3), pages 388-414, August.
    6. Pavel Ciaian & d’Artis Kancs & Johan Swinnen, 2010. "EU Land Markets and the Common Agricultural Policy," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(3), pages 1-31.
    7. Cheng, Kun & Ogle, Stephen M. & Parton, William J. & Pan, Genxing, 2013. "Predicting methanogenesis from rice paddies using the DAYCENT ecosystem model," Ecological Modelling, Elsevier, vol. 261, pages 19-31.
    8. Huang, Hsin & von Lampe, Martin & van Tongeren, Frank, 2011. "Climate change and trade in agriculture," Food Policy, Elsevier, vol. 36(Supplemen), pages 9-13, January.
    9. Rallo, Giovanni & González-Altozano, Pablo & Manzano-Juárez, Juan & Provenzano, Giuseppe, 2017. "Using field measurements and FAO-56 model to assess the eco-physiological response of citrus orchards under regulated deficit irrigation," Agricultural Water Management, Elsevier, vol. 180(PA), pages 136-147.
    10. Kym Anderson, 2009. "Distorted Agricultural Incentives and Economic Development: Asia's Experience," The World Economy, Wiley Blackwell, vol. 32(3), pages 351-384, March.
    11. Pavel Ciaian & d'Artis Kancs & Jo Swinnen, 2008. "Static and Dynamic Distributional Effects of Decoupled Payments," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 51(2), pages 20-47.
    12. Shaghil Ahmed, 2009. "Are Chinese exports sensitive to changes in the exchange rate?," International Finance Discussion Papers 987, Board of Governors of the Federal Reserve System (U.S.).
    13. Lomax, Guy & Workman, Mark & Lenton, Timothy & Shah, Nilay, 2015. "Reframing the policy approach to greenhouse gas removal technologies," Energy Policy, Elsevier, vol. 78(C), pages 125-136.
    14. Harris, Paul G. & Chow, Alice S.Y. & Symons, Jonathan, 2012. "Greenhouse gas emissions from cities and regions: International implications revealed by Hong Kong," Energy Policy, Elsevier, vol. 44(C), pages 416-424.
    15. Kristiina Regina & Jatta Sheehy & Merja Myllys, 2015. "Mitigating greenhouse gas fluxes from cultivated organic soils with raised water table," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 20(8), pages 1529-1544, December.
    16. Anderson, Kym & Kurzweil, Marianne & Martin, Will & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Measuring distortions to agricultural incentives, revisited," World Trade Review, Cambridge University Press, vol. 7(4), pages 675-704, October.
    17. Demirdöğen, Alper, 2011. "Tarımsal Korumacılık, Korumacılığın Ölçümü ve Türkiye [Agricultural Protectionism, Its Measurement and Turkey]," MPRA Paper 35083, University Library of Munich, Germany.
    18. George Nyamadzawo & Yeufeng Shi & Ngonidzashe Chirinda & Jørgen E. Olesen & Farai Mapanda & Menas Wuta & Wenliang Wu & Fanqiao Meng & Myles Oelofse & Andreas Neergaard & Jeff Smith, 2017. "Combining organic and inorganic nitrogen fertilisation reduces N2O emissions from cereal crops: a comparative analysis of China and Zimbabwe," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 22(2), pages 233-245, February.
    19. Anderson, Kym & Valenzuela, Ernesto, 2006. "WTO's Doha Cotton Initiative: A Tale of Two Issues," CEPR Discussion Papers 5567, C.E.P.R. Discussion Papers.
    20. Torres, Carlos M.M. Eleto & Kohmann, Marta M. & Fraisse, Clyde W., 2015. "Quantification of greenhouse gas emissions for carbon neutral farming in the Southeastern USA," Agricultural Systems, Elsevier, vol. 137(C), pages 64-75.

    More about this item

    Keywords

    Agricultural policies; WTO Doha round; WTO compliance; Notification of domestic support; China agricultural support policies; Globalization; Markets;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:793. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.