Agriculture Reference
In-Depth Information
exports of apparel and footwear grew at double digit rates during 2004,
and its domestic retail sales of apparel, shoes, and textiles rose 18.7 per
cent. Chinese yarn production grew 13.9 per cent and cloth production
grew 18.8 per cent during 2004 (Gale 2005).
The contnued ncrease n per capta ncome n Chna has led to not
only a rse n food consumpton but also a change n the structure of food
consumption. Since the late 1990s, China has sharply increased imports of
vegetable olseeds (manly soybeans) and vegetable ols (manly soybean
ol and palm ol). Soybeans are crushed to produce vegetable ol for human
consumpton and anmal feed to help the rapd growth n anmal producton.
Driven by consumer and food industry demands, China has also rapidly
increased imports of meats, fish, milk, cheese, wines, and fruits since the
early 2000s.
Trade barrers
Apart from the economic factors discussed above, other factors could also
affect Chna's revealed comparatve advantage n agrculture. RCA ndces
are not only created by underlying economic forces but are often significantly
dstorted by government polces. Ths problem has been more serous for
trade in agricultural products. Admittedly, after the establishment of the
WTO and the mplementaton of the Uruguay Round Agreement on Agrculture
(URAA), some liberalisation of trade in agriculture has taken place. However,
significant trade barriers remain. In particular, the developed countries have
ncreasngly resorted to santary and phytosantary (SPS) measures for anmal
and plant health and techncal barrers to trade (TBT) to block agrcultural
imports, especially from developing countries; these actions have seriously
affected the developng countres' exports of agrcultural products n whch
they have a comparatve advantage.
Chinese farmers and exporters anticipated a large, positive impact on
exports of agricultural products following accession to the WTO, especially
for labour-intensive agricultural products such as vegetables, fruits, animal
products, and aquatic products. In fact, these products have been hardest
hit by the need to meet significant SPS standards, which has prevented
substantal growth n these exports.
