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China's WTO commitments in agriculture and impacts of potential OECD agricultural trade liberalizations

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Authors:
  • Yu, Wusheng ;
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    Section for Production, Markets and Policy, Department of Food and Resource Economics, Faculty of Science, Københavns Universitet
  • Frandsen, Søren E.
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    unknown
DOI:
10.1111/j.1467-8381.2005.00202.x
Abstract:
After accession to the WTO, China’s agriculture is affected by the implementation of its WTO commitments and will be impacted by any multilateral liberalization (actions by the rich OECD economies in particular) resulting from the Doha negotiations. Using the actual commitment data, our computable general equilibrium simulation results show that China’s WTO commitments will lead to increased agricultural imports and slightly declined outputs in China. The resulting efficiency gains will be negated by terms-of-trade losses, leading to quantitatively small welfare impacts. Furthermore, sectoral results depend critically on correctly representing the more complex policy measures, such as the tariff rate quotas. The negative output effects on Chinese agriculture can be alleviated/reversed if the rich OECD countries commit to reform their agriculture policies. The present paper concludes that trade liberalization should be carried out in both developing and developed countries. Reforming the latter will be particularly helpful in easing the problems facing those developing countries that are carrying out ambitious trade reforms.
Type:
Journal article
Language:
English
Published in:
Asian Economic Journal, 2005, Vol 19, Issue 1, p. 1-28
Main Research Area:
Science/technology
Publication Status:
Published
Review type:
Peer Review
Submission year:
2005
Scientific Level:
Scientific
ID:
2161957888

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