Agriculture Reference
In-Depth Information
Table 2.3
Import tariff rates on major agricultural products subject to
tarff-only protecton n Chna
Real tarff rates n
Effectve as of 1 January
2001
2002
2004
Barley
114 (3)
a
3
3
Soybean
3
b
3
3
Edible oils
114 (3)
a
9
9
Ctrus
40
20
12
Other fruits
30-40
13-20
10-13
Vegetables
30-50
13-29
10-15
Beef
45
23.2
12
Pork
20
18.4
12
Poultry meat
20
18.4
10
Dairy products
50
20-37
10-12
Wne
65
45
14
Tobacco
34
28
10
a
Barley was subject to licence and import quotas; the tariff rate was 3 per cent for
mports wthn the quota and no above-quota barley wth the 114 per cent tarff was
mported n 2001.
b
The tariff rate was as high as 114 per cent before 2000 and lowered to 3 per cent in
early 2000.
Source:
World Trade Organization, 2001.
China's WTO Protocol of Accession
, November,
World Trade Organization, Geneva.
understand what could happen to some of these products t s nstructve
to examine the case of soybeans, where producers clearly did not have a
comparative advantage. Before 2000, the import tariff for soybeans was
as high as 114 per cent, importers required licences and soybean demand
was met mostly by local producers. In anticipation of WTO accession,
however, tariffs were lowered to 3 per cent in 2000 and import quotas
were later phased out. Subsequently, imports surged from 4.32 million
metrc tonnes (mmt) n 1999 to 14 mmt n 2001 and to more than 20 mmt
after 2003. Prices also fell and the nominal protection rate for soybeans
declned from 44 per cent n early 2000 to less than 15 per cent n October
2001 (Rozelle and Huang 2001). From this case, it can be seen that when
protecton rates are reduced from hgh levels and there s strong demand
for the commodity, imports can increase sharply.
