Research On Trade Protection Effect Of China Agricultural Border Measure And Domestic Support

December 11,2001,China officially became one of the WTO members.We must fulfill our WTO commitments on agricultural border trade measures and domestic support policies.Agricultural border trade measures will be adjusted in accordance with the framework of the WTO:many agricultural border trade policies will be canceled or adjusted;some domestic policies and measures which are contrary to the Agreement on Agriculture also need to be appropriately adjusted.Decade of accession to the WTO,adjustment of China's agricultural policy is most significantly.The border trade policy and domestic policy has basically been adjusted to the level of WTO commitments.The impact of the adjustment of the agricultural policy on the domestic agricultural development and rural economic has basically appeared.Meanwhile China's agricultural production and trade patterns changed dramatically,agricultural trade deficit firstly appeared in 2004 and has been existed with the rising trend for nine years.Therefore based on the Current Situation of Chinese agricultural comparative advantage,China's agricultural policy adjustments need to maintain coordination with the WTO Agreement on Agriculture,and base on the optimal pattern of agricultural protection on the pursuit of the maximization of national interests.In the future new round agricultural negotiations,China advocates that agricultural negotiations in the future should be in accordance with the principle of fair competition and the elimination of trade barriers to reduce agricultural protection and promote the fair trade of agricultural products.The overall balance of Agricultural negotiations in China and developing countries should be fully considered and actual needs to ensure that the results of negotiations on the basis which reflect the interests of all parties to achieve.Therefore,under the trend of liberalization of agricultural trade,it is important practical significance for china that discusses how to use agricultural protection and support policies to promote comparative advantage of China's agriculture and achieve the steady development of agriculture without violate WTO rules.According to the framework of the WTO agricultural agreement,china agricultural policy is composed with the border trade measures of agricultural products and domestic support policies.The adjustments of agricultural policy will change the agricultural market mechanism and the domestic and foreign price relationship.In turn it will lead to the distortions influence in agricultural output structure and agricultural products markets,and ultimately affect agricultural product trade and benefits.Therefore it is necessary to measure the effect of agricultural frontier trade policy adjustment and agricultural policy's adjustment of China agricultural import competition and export department and the influence of different policy measures between border trade policy and domestic policy adjustment policy measures.Under the open multilateral trading system,it is effectively to improve the protective effect of a country's policies with the effective cooperate of domestic policies and border policy.So how to adjust the border trade and domestic policy measures to enhance the agricultural comparative advantage,optimize the agricultural products trade patterns is the key to maintaining the stability relations of domestic production and market and the reasonable structure of import and export trade of agricultural products and to protect farmers' interests.Furthermore,the study results can provide a certain basis and also help to provide decision-making reference for the adjustment and development of agricultural policy in the Chinese border trade policies and domestic policies and measures.On the basis of detailed discussion on the changes of China's agricultural policy adjustments,it expounds the status of China's agricultural development and trade.Firstly,it quantifies the non-tariff measures with method of the unified tariff equivalent and estimates the Chinese agricultural border trade policy influence on agricultural products trade and trade benefits.Then it empirically quantifies adjustment effect of China's agricultural policy from the various levels of agricultural overall,the different agricultural sector and different agricultural policy measures using agricultural production,trade and related price data.It discusses the gap of agricultural protection level between China and other countries and regions of the world and hopes to explore the adjustment of China's agricultural policies and agricultural trade protection from the perspective of the index of trade restrictions and the equivalent tariff.It discusses the trade volumes restrictions and trade welfare effects due to different products and different department of agriculture with different agricultural policy adjustment and provides the basis for China's future agricultural policy adjustment and maximizes trade benefits of open trade policies.To measure the overall effect of China's agricultural trade policy adjustment with accession to the WTO,It establishes import trade volume block model with some influence factors such as non-tariff measures,tariffs and domestic support with the research object of agricultural products trade before and after China's accession to the WTO in 1995-2011 and quantifies the effect of non-tariff trade measures on imports of agricultural products with measuring the demand elasticity of agricultural imports.Secondly it empirical analyses of the combined effect of border trade policies according to the tariff equivalent of non-tariff measures basing on measuring the demand elasticity of agricultural imports for the future of the agricultural frontier trade policy adjustment and the agricultural production and trade to provide decision-making basis.It uses the trade restrictions index to analysis and measure policy adjustment effect and trade benefits under the background of agricultural trade policy of China's major import and export of agricultural products and the agricultural sector(import-competing sectors and export sector).Empirical studies display that the elasticity of demand price and income on the classification of agricultural products almost is inelastic.The elasticity of supply price of main agricultural products is small.Those mean that there is not strong correlation of changes in the prices of agricultural products and agricultural production,the former Phase supply has a greater impact on the current period.There is negative impact on current supply of agricultural products under the price of agricultural production materials.Secondly,it quantifies trade restrictions index of agricultural products trade volume and trade benefits under China's agricultural policy adjustment of import-competing sectors and export sectors based on the estimates of domestic supply and demand price elasticity.Then it separately elaborates effect arising from the different departments of agricultural policy changes and the results can be more realistic to reflect the impact of China's agricultural trade under agricultural policy adjustment,due to integration into the domestic supply and price elasticity of demand.Furthermore,it will focus on the effect of trade volumes and trade benefits of the adjustment of agricultural frontier trade policy measures and domestic policy measures under the framework of agricultural policy adjustment.There will be a composite impact on agricultural production and trade patterns in the use of different policies and measures and will be an urgent need for the scientific evaluation of the effect of the implementation with different policies and measures.Basing on some literatures,it estimates different trade restrictions index of agricultural policy measures with method to measure and compare the effect of the implementation of agricultural policy.Firstly,it estimates the relative contribution of different degree with agricultural policy on agricultural products trade and the level of trade and welfare restrictions;secondly followed with the global trade distortions database of the World Bank,it transversally compares the effect on trade volumes and trade benefits of different national agricultural policies and the effect of existing agricultural policy tools between China and other countries.The results show that the proportion of different policies and measures to reduce the impact on producer and consumer trade and trade benefits is different.Respectively,the import and export tax respectively have played an important interaction and contribution in world agricultural trade liberalization process.The results also revealed the interaction of different policies in different periods.When the world agricultural prices fluctuation is more apparent,there are also significant differences in the effects of different policy measures.From the comparison of the effects of policies in China and other countries,it is the same of border policy measures,but still below the level of developing countries and the world as a whole,China's existing agricultural frontier policy measures have less effect on the trade of agricultural products.There are significant differences in trade effect of domestic policy measures between China and the developed countries and the trade effect of China's domestic policies is the lowest.China is a large agricultural country and at the same time is a major player in world trade activities.So china should inevitably need to comprehensibly consider the gain and loss in China's future agricultural trade negotiations and to maximize the net benefits of agriculture in the world.In the process of the adaptation of agricultural policy,policymakers and the public are concerned about the trade and trade welfare effect of adjustments of different departments,different policies and measures.Agricultural policy adjustment might lead to distortions in the domestic and international market prices of agricultural to a certain extent,thereby affect agricultural production and trade patterns,and even affect the social welfare under the adjustment of China agricultural policy.So it tries to provide a new angle of analysis and the selection reference for agricultural trade negotiations in the coming period goals and to develop the agricultural border trade policy and domestic policy.