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China's Accession to the WTO: What Is at Stake for Agricultural Markets?

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Listed:
  • Frank H. Fuller
  • John C. Beghin
  • Stephane De Cara
  • Jacinto F. Fabiosa
  • Cheng Fang
  • Holger Matthey

Abstract

The authors analyze the impact of China's accession to the World Trade Organization on major crop and livestock markets using the FAPRI modeling framework. They incorporate expected changes in consumer income, textile production, and trade policies as exogenous shocks to the baseline model. Following accession, revenues decline in China's livestock, grain, and oilseed industries, while cotton production prospers despite increased cotton imports. Chinese consumers benefit from lower food prices, with vegetable oil, dairy, and meat consumption increasing significantly. Argentina, Brazil, Canada, the European Union, and the United States are the greatest beneficiaries from expanded agricultural trade with China.

Suggested Citation

  • Frank H. Fuller & John C. Beghin & Stephane De Cara & Jacinto F. Fabiosa & Cheng Fang & Holger Matthey, 2001. "China's Accession to the WTO: What Is at Stake for Agricultural Markets?," Center for Agricultural and Rural Development (CARD) Publications 01-wp276, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:01-wp276
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    References listed on IDEAS

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    1. Fan, Shenggan & Pardey, Philip G., 1997. "Research, productivity, and output growth in Chinese agriculture," Journal of Development Economics, Elsevier, vol. 53(1), pages 115-137, June.
    2. repec:ags:joaaec:v:30:y:1998:i:1:p:127-40 is not listed on IDEAS
    3. Koo, Won W., 2000. "The Impacts Of China'S Accession Into The Wto On The U.S. Wheat Industry," Agricultural Economics Reports 23320, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Dermot J. Hayes & Roxanne Clemens, 1997. "Chinese Market for U.S. Pork Exports, The," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 97-bp14, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Anderson, Kym & Dimaranan, Betina V. & Hertel, Thomas W. & Martin, William J., 1997. "Asia-Pacific food markets and trade in 2005: a global, economy-wide perspective," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(1), pages 1-26.
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    8. Wang, Qingbin & Fuller, Frank H. & Hayes, Dermot J. & Halbrendt, Catherine K., 1998. "Chinese Consumer Demand For Animal Products And Implications For U.S. Pork And Poultry Exports," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(1), pages 1-14, July.
    9. Huang, Jikun & Chen, Chunlai, 1999. "Effects of Trade Liberalization on Agriculture in China: Institutional and Structural Aspects," Working Papers 32722, United Nations Centre for Alleviation of Poverty Through Secondary Crops' Development in Asia and the Pacific (CAPSA).
    10. Babcock, Bruce A. & Beghin, John C. & Fuller, Frank H. & Mohanty, Samarendu & Fabiosa, Jacinto F. & Kaus, Phillip J. & Fang, Cheng & Hart, Chad E. & Matthey, Holger & de Cara, Stephane & Kovarik, Kare, 2001. "FAPRI 2001 U.S. and World Agricultural Outlook," FAPRI Staff Reports 32052, Food and Agricultural Policy Research Institute (FAPRI).
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    Cited by:

    1. Christophe Charlier, 2012. "Distrust and Barriers to International Trade in Food Products: An Analysis of the US — Poultry Dispute," GREDEG Working Papers 2012-02, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Nov 2013.
    2. Nin, Alejandro & Hertel, Thomas W. & Foster, Kenneth & Rae, Allan, 2004. "Productivity growth, catching-up and uncertainty in China's meat trade," Agricultural Economics, Blackwell, vol. 31(1), pages 1-16, July.
    3. Fang, Cheng & Beghin, John C., 2002. "Urban Demand for Edible Oils and Fats in China: Evidence from Household Survey Data," Journal of Comparative Economics, Elsevier, vol. 30(4), pages 732-753, December.
    4. Alan Matthews, 2001. "The Possible Impact of China's WTO Membership on the WTO Agricultural Negotiations," CEG Working Papers 200110, Trinity College Dublin, Department of Economics.
    5. Wusheng Yu & Søren E. Frandsen, 2005. "China's WTO Commitments in Agriculture and Impacts of Potential OECD Agricultural Trade Liberalizations," Asian Economic Journal, East Asian Economic Association, vol. 19(1), pages 1-28, March.
    6. Unknown, 2005. "Articles from Volume 1, Issue 1, 2005, Journal of International Agricultural Trade and Development," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 1(1), pages 1-95.

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