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China's Accession to the WTO: What is at Stake for Agricultural Markets?

Author

Listed:
  • Fuller, Frank H.
  • Beghin, John C.
  • Fabiosa, Jacinto F.
  • Fang, Cheng
  • Matthey, Holger
  • DeCara, Stephane

Abstract

The authors analyze the impact of China?s accession to the World Trade Organization on major crop and livestock markets using the FAPRI modeling framework. They incorporate expected changes in consumer income, textile production, and trade policies as exogenous shocks to the baseline model. Following accession, revenues decline in China?s livestock, grain, and oilseed industries, while cotton production prospers despite increased cotton imports. Chinese consumers benefit from lower food prices, with vegetable oil, dairy, and meat consumption increasing significantly. Argentina, Brazil, Canada, the European Union, and the United States are the greatest beneficiaries from expanded agricultural trade with China.

Suggested Citation

  • Fuller, Frank H. & Beghin, John C. & Fabiosa, Jacinto F. & Fang, Cheng & Matthey, Holger & DeCara, Stephane, 2003. "China's Accession to the WTO: What is at Stake for Agricultural Markets?," Staff General Research Papers Archive 2085, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:2085
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    References listed on IDEAS

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    1. Dermot J. Hayes & Roxanne Clemens, 1997. "Chinese Market for U.S. Pork Exports, The," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 97-bp14, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Wang, Qingbin & Fuller, Frank & Hayes, Dermot & Halbrendt, Catherine, 1998. "Chinese Consumer Demand for Animal Products and Implications for U.S. Pork and Poultry Exports," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(1), pages 127-140, July.
    3. Elena Ianchovichina, 2001. "Trade Liberalization in China’s Accession to WTO," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 16, pages 421-445.
    4. Huang, Jikun & Chen, Chunlai, 1999. "Effects of Trade Liberalization on Agriculture in China: Institutional and Structural Aspects," Working Papers 32722, United Nations Centre for Alleviation of Poverty Through Secondary Crops' Development in Asia and the Pacific (CAPSA).
    5. Huang, Jikun & Chen, Chunlai, 1999. "Effects of Trade Liberalization on Agriculture in China: Commodity Aspects," Working Papers 32665, United Nations Centre for Alleviation of Poverty Through Secondary Crops' Development in Asia and the Pacific (CAPSA).
    6. Huang, Jikun & Rozelle, Scott, 1996. "Technological change: Rediscovering the engine of productivity growth in China's rural economy," Journal of Development Economics, Elsevier, vol. 49(2), pages 337-369, May.
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    8. Koo, Won W., 2000. "The Impacts Of China'S Accession Into The Wto On The U.S. Wheat Industry," Agricultural Economics Reports 23320, North Dakota State University, Department of Agribusiness and Applied Economics.
    9. Fang, Cheng & Beghin, John C., 2003. "Protection and Comparative Advantage of Chinese Agriculture: Implications for Regional and National Specialization," Staff General Research Papers Archive 10102, Iowa State University, Department of Economics.
    10. repec:jaa:jagape:v:30:y:1998:i:1:p:127-40 is not listed on IDEAS
    11. Anderson, Kym & Dimaranan, Betina V. & Hertel, Thomas W. & Martin, William J., 1997. "Asia-Pacific food markets and trade in 2005: a global, economy-wide perspective," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(01), pages 1-26.
    12. Babcock, Bruce A. & Beghin, John C. & Fuller, Frank H. & Mohanty, Samarendu & Fabiosa, Jacinto F. & Kaus, Phillip J. & Fang, Cheng & Hart, Chad E. & Matthey, Holger & de Cara, Stephane & Kovarik, Kare, 2001. "FAPRI 2001 U.S. and World Agricultural Outlook," FAPRI Staff Reports 32052, Food and Agricultural Policy Research Institute (FAPRI).
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    2. Alan Matthews, 2001. "The Possible Impact of China's WTO Membership on the WTO Agricultural Negotiations," CEG Working Papers 200110, Trinity College Dublin, Department of Economics.
    3. Christophe Charlier, 2012. "Distrust and Barriers to International Trade in Food Products: An Analysis of the US — Poultry Dispute," GREDEG Working Papers 2012-02, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Nov 2013.
    4. Unknown, 2005. "Articles from Volume 1, Issue 1, 2005, Journal of International Agricultural Trade and Development," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 1(01), pages 1-95.
    5. Nin, Alejandro & Hertel, Thomas W. & Foster, Kenneth & Rae, Allan, 2004. "Productivity growth, catching-up and uncertainty in China's meat trade," Agricultural Economics, Blackwell, vol. 31(1), pages 1-16, July.
    6. Fang, Cheng & Beghin, John C., 2002. "Urban Demand for Edible Oils and Fats in China: Evidence from Household Survey Data," Journal of Comparative Economics, Elsevier, vol. 30(4), pages 732-753, December.
    7. Wusheng Yu & Søren E. Frandsen, 2005. "China's WTO Commitments in Agriculture and Impacts of Potential OECD Agricultural Trade Liberalizations," Asian Economic Journal, East Asian Economic Association, vol. 19(1), pages 1-28, March.

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