Agriculture Reference
In-Depth Information
agricultural sector, China is also facing increasing challenges due to the
dmnshng amount of cultvated land n eastern Chna and ncreasng water
scarcity in the northern part of the country (Sonntag et al. 2005). Many
have predcted that almost all gans n agrcultural output wll have to come
from new technologies that significantly improve agricultural productivity
(Fan and Pardey 1997; Huang et al. 2002, 2003).
Trade lberalsaton mght also challenge Chna's agrcultural and rural
economy. There have been serous debates about the mpact of World Trade
Organzaton (WTO) accesson on Chna's agrculture. Some argue that there
will be substantial adverse impacts from trade liberalisation, affecting
hundreds of mllons of farmers (Carter and Estrn 2001; L et al. 1999).
Others beleve that although some mpacts wll be negatve and even severe
in particular areas, the overall effect of accession on agriculture will be
modest (Anderson et al. 2004; van Tongeren and Huang 2004; Martin 2002).
In part, the differences in opinion can be traced to a lack of understanding
of the polcy changes that occurred before Chna's accesson.
The objectve of ths chapter s to revew Chna's agrcultural development
and polcy before and snce WTO accesson. The chapter s organsed as
follows: first, we briefly review China's agricultural performance and
policies before accession to the WTO. Next, we examine the main features
of the agreement that China must adhere to as it enters the WTO. Third, we
review changes in China's agricultural policy since joining the WTO. Finally,
we conclude by drawng out the mplcatons of the polcy changes.
Agricultural performance and policy before China's WTO
accession
Agricultural performance
Chna's economc lberalsaton and structural changes have been under
way for several decades. Although the reforms have penetrated the whole
economy since the early 1980s, most of the transformations began and in
some way have depended on growth n the agrcultural sector (Nyberg and
Rozelle 1999). In the period from 1978 to 1984, de-collectivisation, price
ncreases and the relaxaton of local trade restrctons on most agrcultural
products accompaned a take-off of Chna's agrcultural economy. Gran
