China’s grain trade and policy development: five years since joining the WTO

Abstract

This paper examines the development of China's grain trade and policies after its entry into the WTO in 2001 with an emphasis on the implementation and management of the grain TRQs (tariff-rate quotas). The result shows that China's total grain trade volume has increased significantly and net grain imports have also increased. While China has done well to fulfill its WTO entry commitments, its trade policies were generally in favour of encouraging domestic grain production. Chiefly influenced by domestic demand-supply situations coupled with policies promoting domestic supply, China's grain imports and exports in the past five years fluctuated and the utilisation of the grain TRQ's has been low. Whether China's grain TRQ usage will increase and how its grain trade policy will evolve will continue to be affected by domestic grain supply and demand, and also by the outcomes of bilateral and multilateral free trade negotiations.