The Research On The Food Subsidy Policy Of Main Member Countries Under WTO Framework And Its Implications For China

Complete the WTO in our five-year transition period, whether it is the commitment to performance practice, or to meet food demand, the inevitable opening up the domestic grain market, in the WTO framework to study how to enhance effects of food subsidies is important.Based on this, we use partial equilibrium analysis, comparative analysis and other methods, primarily through the WTO members have used or are using the main effect of food subsidy policy and its theoretical analysis and comparative analysis, the following ideas: Food price support, the difference between target prices and price subsidies, input subsidies such as "amber box" policy will distort market prices, resulting in a net loss of social welfare, but in the short term effect of stimulating production; common agricultural support services, subsidies to agricultural producers to retire or change jobs and other "green box policy" to increase the total grain output, increase per capita income; should be flexibility in the use of including the "amber box" policies and "green box" policies, including subsidies to support a variety of means to enhance the effect of food subsidies.This paper defines the concept of food subsidies, analyzes food subsidy under the WTO rule in theoretical basis for policy implementation. Second, we use partial equilibrium analysis, analysis of the closed economy and open economy, "amber box subsidies," the economic effects of policy, research suggests that: the price support policy of agricultural products may also lead to excess, and this policy monopoly acquisition, and long-term distortions in the market price may cause damage to the interests of farmers. In the presence of international trade cases, the target price and the price difference between the subsidies and agricultural input subsidies will lead to lower prices, increased exports, but also harm the interests of producer countries. Solow model based on the "green box subsidies," Policy analysis showed that the economic effects: the production is not linked to income subsidies to raise farm income, improve social welfare, agricultural policy adjustments, such a policy supporting the implementation of new policies also help implemented. Agricultural subsidies can increase the social protection net, but there is an optimal subsidy rate level, should not be too high or too low, otherwise it will affect the maximization of social net. Then, the paper of the United States, European Union, Japan and other major developed countries and the effect of food subsidy policy evaluation, comparative analysis shows: direct income subsidies to increase efforts to improve the environmental quality and improve food production capacity has become a WTO member countries food subsidies The main trends in policy change. Finally, the paper proposes the use of WTO rules in China to enhance food subsidy policy effects of policy recommendations.