Agriculture Reference
In-Depth Information
these measures should lead to improved policies and, by basing policies on
a scientific approach, should lead to a move away from the time-consuming
and inefficient approach of resolving these issues on a political basis. China
has undoubtedly struggled n ts efforts to create a fully transparent and
open trade regme wth respect to non-tarff barrers.
Domestc market reform and nfrastructure development
After more than 20 years of reform, China's agriculture has become much
more market orented (de Brauw et al. 2000). Traders move products
around the country wth ncreasng regularty and factor markets adjust
more rapidly. By the late 1990s, only grain, cotton and, to some extent,
slkworm cocoon and tobacco were subjected to prce nterventons. Even n
these cases, markets—especially those for grain—have become increasingly
competitive, integrated and efficient.
Despite the gains in market performance in recent years, WTO accession
makes demands on Chna's domestc agrcultural markets. The domestc
marketng polcy response to the naton's WTO accesson was substantal
and will continue. Major changes have been aimed at improving the
efficiency of market performance and minimising the adverse shocks that
could arse from external trade lberalsaton. Perhaps more than n any
other sector, the full liberalisation of cotton and grain markets in China
clearly showed that ts leaders have been usng ths opportunty to develop
healthy domestc agrcultural markets.
In response to WTO accession, the government has ambitious plans
to ncrease nvestment n market nfrastructure. Leaders see a need to
establish an effective national marketing information network. Officials in
the Ministry of Agriculture have been attempting to standardise agricultural
product qualty and promote farm marketng. Some have advocated the
creation of agricultural technology associations. Generally, all of these
moves are part of an effort by leaders to shift fiscal resources that were
once used to support Chna's costly prce subsdsaton schemes (ncludng
domestc and nternatonal trade subsdes) to productvty-enhancng
nvestments and marketng nfrastructure mprovements.
