The Research On Removal Of Agricultural Export Subsidy By Political Economics

There are still many trade barriers in agricultural trade which is out of the domination of multinational trade system based on GATT. On the Uruguay Rounds, the members of GATT came to Agreement of Agriculture of which export subsidy became an important part. As an effective way to change the trade flow, export subsidy not only reflects complicated conflicts, but also is an important part of Doha Development Agenda. There are many frustrations in negotiations, so it becomes the focus of every country. But traditional economics cannot give a good explanation.Based on the welfare economics, traditional economics doesn't take political decision into consideration. It is said that government is the exogenous executor during making and implementing the public policy and political decision is the exogenous variable of economic decision. We can find that there is no connection between politics and economics. But political economics makes up the defect by utilizing the public choice theory. It's thought that trade-policy-making is an endogenous character, is the balance of supply and demand in political market. Government publicizes the policy reflecting the result of interest groups'affecting on government. Not only the domestic policy, can interest groups also affect the government's position in multinational negotiations in order to obtain more benefits. Therefore, the writer analyzes how agricultural interest groups in different countries to influence the domestic trade policy and games in negotiations.United States, European Union and other alliances are the main members of this agenda. Firstly, the farmers of United States required the officials to force European Union to remove export subsidy for the policy of EU weakening their competence. Secondly, as the advocate of agricultural protection, in order to mediate the conflicts of agricultural interest groups and non-agricultural interest groups, EU agreed to remove the agricultural export subsidy. Besides the two leading members, other agricultural countries enter into an alliance for strengthening themselves to cancel the export subsidy, such as G20, G33 and G90. To sum up, the writer hope that there may be some helps for China take part in multinational trade negotiations by analyzing the process of the removal of agricultural export subsidy.