| Grain is a kind of particular goods for it has important social attribute apart from its normal ones. Grain safety concerns our nation's political stability and sustained development of economy. But grain industry is vulnerable, which not only faces to natural hazards but also market risk owing to price fluctuation. Due to the importance and vulnerability of grain, every country adopts various policies to protect and support the grain industry. Our country has carried out the grain domestic support policy for many years, which is from indirect support of circulation link of grain, market price support to direct income support. The transition of grain domestic support modality is not only to enhance the efficiency of support policy but also to be adapted to the international situation of entering the World Trade Organization to make the support acceptable to its rules.Our country has got the condition of industry regurgitation-feeding agriculture as the rapid development of our nation's economy. At present, the grain domestic support policy has the tasks such as increasing peasant's income, narrowing the gap between city and countryside and expanding the consumption market of rural areas besides the fundamental target of protecting grain security. As a member of WTO, our country should make use of precious financial fund and take full advantage of various kinds of grain domestic support in order to achieve the above-mentioned government's targets.Based on above problems, it is necessary to adjust current grain domestic support policies. The paper aims to find out the approach to adjust the grain domestic support policies that accord with the WTO rules and our government financial conditions, are useful to increase peasant's income and ensure food security. The main contents and conclusions of the paper are as follows.Firstly, the paper compares the Agricultural domestic support modalities between the Uruguay Round and Doha Round. The framework agreements emphasize the Green Box criterion will be reviewed and clarified with a view to ensuring that Green Box measures have on, or at most minimal, trade-distorting effects or effects on production. Such a review and clarification will need to ensure that the basic concepts, principles and effectiveness of the Green Box remain and take due account of non-trade concerns. The framework agreements put forward the Ample Box, De Minimis and Blue Box should be reduced according to the tiered formula and the AMS should be reduced to 20 percent for the first year.Secondly, the paper compares the transition process of grain domestic support policies between home and foreign country. The results show as follows: the extent of support is very broad; the price support is the main method and soft loan is the supplementary means; the means of support is concealed.Thirdly, the paper applies the methods of both OECD and WTO to calculate the level of our country's grain domestic support respectively.Fourthly, the author makes an empirical analysis between the level of grain domestic support and grain yield. The result demonstrates that the grain Blue Box and Market Price Support policies all have the function to increase the grain yield. But the Market Price Support has a more obvious result.Fifthly, according to the rules of WTO, the author designs different levels of grain domestic support in order to observe the change trend of grain yield. The result shows the higher the Market Price Support is raised, the more the grain yield increases. And the Green Box Policies of grain have the same function to the grain yield.Sixthly, according to the above-mentioned empirical results and grain domestic support experiences of foreign country, the author points out the adjustment orientation of grain domestic support policies of our country. Firstly, the unreasonable structure of grain Green Box Policies should be changed. Secondly, the government should increase the grain Amber Box Support and make use of all kinds of Amber Box measures adequately under the rules of WTO. |
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