Study On New Agricalturial Subsidies According To WTO

With China's accession to WTO, China takes part in the globalization of the world economy. It's certain our agriculture is to compete in the world market. Looking into the rules of WTO and agreement on Sino-American agricultural cooperation, China's joining in WTO will bring serious challenges to agriculture. It's necessary to take measures to enhance the competitive abilities of our produce according to WTO rules. As the most important policy, the reform of subsidies policy draws many attentions. This paper addresses the issue by demonstration. Our indirect subsidies system must be changed because of the lack of efficiency. It's also because we must face the change of agriculture production situation. The goal of reform is to establish direct subsidies system. This system has several targets such as increasing farmers' income and insuring the food safety. Now we should put priority on the former. And the method is enhancing the competitive abilities of our production, especially those with potential competitive edges and without market ones. These measures include subsidies on science and environment protection. The impacts after the accession into WTO vary with the region. Those farmers in hinterland nearly can't benefit from the increase of export. So other measures should be taken such as the reduction of taxes, direct price support and income subsidies. These measures also protect the farmers who grow grain corps. We have no competitive edges on grain corps, but the food safety needs the sound development of grain production.