Rethinking China's domestic agriculture support measures under WTO protocols

Abstract

China's entry into the World Trade Organisation (WTO) has necessitated a rethink of the country's agricultural domestic support policies. Under the terms of entry, Chinese authorities are no longer able to control agricultural inputs, outputs and prices, Chinese agricultural exports no longer enjoy government subsidies and Chinese agricultural import-competing products enjoy only single tariff protection. With entry into the WTO, China faces the problem of affording effective protection to its domestic import-competing sector, ensuring food security, and enhancing its export competitiveness while simultaneously fulfilling its strong commitment to the WTO. Fortunately, specific provisions in the WTO protocols do allow for the easing of the country's protection reduction commitments. Chinese authorities need to make use of these WTO provisions to ensure domestic agricultural self-sufficiency and export competitiveness.