Agriculture Reference
In-Depth Information
quotas (TRQs) and domestic support. For example, the baseline tariff rates
of the service sector are set at zero. Clearly, in reality this is not the case.
The smulaton usng the closure of no control on trade balance shows that
imports of crops increase by 84 to 88 per cent, which implies that the tariff
rate quota for some crops may be binding. So the introduction of the TRQ
n the model s necessary to obtan more realstc results.
Second, the CERD model is a national model, which suppresses international
linkages and may omit some important information. For example, it predicts
that China's apparel sector will increase following WTO accession. However,
ths result s very much dependent on whether other countres ntate the
special textile safeguards. Therefore, it would be appropriate to link CERD
with a global model to reflect these international relationships.
Third, the database and parameters need to be refined. For example,
regional protection measures should be introduced. Also, the agricultural
sectors could be dsaggregated further as the present aggregaton may hde
significant impacts on some crops.
Notes
1 For example, see Li et al (1998), Wang (2000), Ianchovichina and Martin (2001), Lloyd and
Zhang (2001), Anderson, Huang and Ianchovichina (2002), Diao, Fan and Zhang (2002),
Diao et al (2002), Francois and Spinanger (2002), and Yu and Frandsen (2002).
2 Although this is higher than the effective rate, it may represent the actual protection level
if non- tariff barriers are taken into consideration. Moreover, the effective rate tends
to underestmate the actual protecton level as t s weghted by mport volumes.
3 It should be noted that the treatment here implies no change in the employment (or
unemployment) level emboded n the database.
4 It could be set at any level, but zero change is an obvious target.
5 It should be noted that China's crop imports account for only 1.3 per cent of total imports
in the baseline, and that even after the 88 per cent increase crop imports are still small
n absolute terms.
6 The problem of so-called
san long
(agriculture, farmers and rural development) has been
a popular topc.
7 For example, the newly implemented reporting requirement for genetically modified food
s nterpreted as an mportant tool to protect Chna's tradtonal soybean growng areas
in the northeast region against competition from the US. However, it should be pointed
out that these practces have been learnt from other countres. Chna often complans
that ts exports face even strcter techncal barrers.
