Study On Policy Of Agricultural Support Within WTO Framework

Agriculture has always received the attention of various countries for its basic and strategic position in the national economy and the people's livelihood. It is essential points to utilize the rational agricultural policy to advance agriculture. The agricultural problem is most important for a developing country of a large population of China. At present, agriculture, countryside and farmers have already become one of the most urgent problems we must face to, so we must adopt the correct agricultural policy to guarantee the effective supply of agricultural products, to increase farmer's income and to promote agriculture. We should consider not only the short-term influence but also the long-term influence on agricultural development. This paper bases on the new international economic environment our country is facing after the entry into WTO, draws lessons from domestic and international scholar's achievements, discusses the choice of Chinese agricultural policy by combining the actual conditions of Chinese agriculture and then points out China should implement the agricultural support policy. Moreover, I find Chinese agricultural support policy has a lot of defects and propose the ways to perfect it.The whole paper has about 45000 words except introduction and remarks. The body of it can be divided into three parts:Chapter one discusses the basis of Chinese agricultural support policy within WTO framework. Since China has already be the member of WTO, agricultural policy must comply with the principles and requests of WTO.Agricultural support and agricultural protect have connection and distinguish and often are confused, so it's essential to differentiate the two concepts. Basic feature of agricultural protect is to substitute and distort market mechanism function by means of the governmental intervenes in domestic price and border control. Agricultural support doesn't distort or has a minimum degree distortion to improve the key competitiveness of agricultural products, such as financial public investmentand green subsidy. As we can see, the two concepts are different in suitable condition, policy utility and expenses sources. Though agricultural protect once was the mainstream of agricultural policy from the forties to seventies of the 20th century, now it has been proved that its fraud are greater than its profits according to theories and practices of various foreign countries. Since the eighties of the 20th century, agricultural support has been becoming the mainstream of the world agricultural policy. At the same time, agricultural support has many advantages, such as it can remedy the defects of the market mechanism, be beneficial to its constant development of Chinese agriculture, enhance agricultural international competitiveness and export trade of agricultural product, lighten financial pressure and reduce the friction of international trade and be accorded with the demands for WTO.Chapter two studies the current situation of Chinese agricultural support. Agricultural protect and agricultural support coexist in China. The level of the former is higher, but that of the latter isn't. The level of agricultural support is low and 80% of that concentrates on government's general service so that there's less support to production process and structure of support has a lot of blanks. The theory analysis indicates the rate of return on investment of agricultural science and technology is the highest in agricultural support, the second is rural education investment and rural public infrastructure investment. While in fact, regardless of the proportion or growth trend, the actual distribution order of rural public investment of our country is just put upside down with the ideal preferential preface, which is mainly because of the outside of agricultural science technology and education investment return and of the incentive mechanism of governmental investment. In addition Chinese agricultural support has the following problems: the input in agricultural science and technology and agricultural educ...