Potential Implications of China s WTO Accession upon Chinese Agricultural Trade

Ever since the diplomatic normalization with the U.S. in 1979, China has been urged to open its market in all areas. After a decade of bilateral trade negotiations with the U.S., China has finally reached an agreement with the U.S. regarding the accession of the WTO, overcoming the last obstacle of agricultural issues. It means that China has to reduce the existing import tariff rates together with the tariffication of non-tariff measures. As a result, deterioration in international competitiveness is expected in crops such as wheat, corn, soybean, and cotton, etc. Other commodities such as livestock products, rice, tobacco, and apple may experience a minimal impact. Also, more investments in agricultural industry are expected in an effort to strengthen their agricultural industry. In terms of trade, Chinese overall balance is likely to be maintained between domestic production and consumption. Besides, China may be able to improve the export environment of agricultural products, and induce the developed technologies and investments, even though the potential risk of social instability ensues from new unemployment.