Positive Study On Agricultural Domestic Support Of Jilin Province Under WTO Framework

Jilin province is both the important main area that produces grain and the biggest marketable grain base that exports commodity grain. It provides plentiful sources of commodity grain to ensure the grain safe and make the society sable for the whole country in many years. For making it develop stably, agriculture has been intervened and supported by governments in Jilin province. Agricultural comprehensive productivity and rural incomes have been raised significantly. However, during the new stage for Chinese agricultural development, the surrounding which Jilin agriculture develops in has changed greatly, especially after China's WTO Accession. One hand, farm produce buyers' market comes into being in china, so it is difficult for Jilin farmers to sell the grain. On the other hand, Jilin's farm produce face the drastic competition from the overseas produce. Nevertheless, domestic agricultural support and protection is limited by WTO rules. It has caused great impact to agriculture in Jilin province, follow as agriculture output, the rural employment of labor force, peasant income, the international trade of agricultural products, agricultural management system and the traditional domestic agricultural support policy system. Under the situation, it is indispensable for building the grain bases to examine the WTO Agreement on Agriculture criteria for domestic support, to analyze the status quo of agricultural domestic support in Jilin, make a summary of historical experience, study on the reforming and adjusting the agricultural support and protection policy. Then it classifies the criteria which we can use and which we should avoid. At last it puts forward possible suggestions on China's agricultural domestic support policy adjustment. These policies adjustments will make us get the right and fulfill the obligation better and stimulate the development of agriculture under this new international framework. The structure of this paper are as followed:If we want to research how to support and protect our agriculture after China's WTO Accession, we have to clarify the item of WTO and rules of agricultural produce trade; explore the successful experiences of other countries; quantify the effect, level and efficiency of the current agricultural support and protection in Jilin. Based on this foundation we may make a positive study on the agricultural support and protection in Jilin in the WTO framework through quantifing the current condition. Based on this, we hope we can provide a set of measures to policy makers. This research can be divided into several parts:(1) According to the rules of WTO, we define the concepts and scope of agricultural domestic support as: Firstly, we call them as Amber Box policy that distort the agricultural production and trade. Secondly, we call them as Green Box policy that doesn't distort the agricultural production and trade, will improve the relationship between agriculture and other industries and will promote them to develop harmoniously.(2) Based on elaborating the theoretical basis, this article researches the objective necessity of agricultural support and protection in Jilin, such as: ensure the china's grain safety, improve the outer public interests, remedy the agricultural weakness and enhance the international competitiveness of farm produce in Jilin province.(3) The core of this research is the positive analysis on "Amber Box" and "Green Box" measures. In the course of analyzing the "Amber Box" policy, we use some means such as AMS and institution vicissitude etc to study the effect of the price support policy and price subsidy of agricultural means of production. Moreover, when we study the "Green Box" policy, we compare the structure of Jilin's "Green Box" policy with the China's and the whole world's average level. On the basis of this, we quantify the unstability of every "Green Box" policy through computing the entropy. Above analysis indicate that the structure of "Green Box" policy is not very reasonable and efficient.(4) At last, this research puts forward some suggestions such as: increase the level of Amber Box support to the Jilin's agriculture, change the negative protection into positive state; increase the investment to agricultural scientific research, adjust the structure of it; build a system of quality monitor to insure the quality of agricultural product in Jilin; establish a stable and fair relationship between the production areas and sale areas, decrease the Jilin's fiscal press of grain storage; augment the investment to rural education, open up the resource of labor as fast as possible; reinforce the rural public service system through increasing the investment to the agricultural institutions.