A publication of AAEA

A publication of AAEA
U.S. Commodity Markets Respond to Changes in China's Ag Policies

U.S. Commodity Markets Respond to Changes in China's Ag Policies

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Theme Overview: U.S. Commodity Markets Respond to Changes in China's Ag Policies

Mary A. Marchant

Although international trade deficits have recently been reputed as bad for the economy, agricultural trade represents 20% of U.S. farmers’ income. China, the United States’ largest agricultural export market, plays a key role in the economic wellbeing of U.S. agriculture. This theme analyzes Chinese agricultural policies and their impact on U.S. exports.

China’s Evolving Agricultural Support Policies

Mina Hejazi and Mary A. Marchant

China’s price support programs, aimed at improving food security and grower incomes, led to increased domestic prices. The resulting gap between domestic and international prices created large stockpiles. In response, China implemented target prices for cotton and soybeans and eliminated corn price supports. Self-sufficiency agricultural policies continue.

U.S. Agricultural Exports to China Increased Rapidly Making China the Number One Market

James Hansen, Mary A. Marchant, Francis Tuan, and Agapi Somwaru

U.S. agricultural commodity exports to China increased rapidly after China’s accession to the WTO in 2001. In 2012, China became the United States’ leading agricultural export market. Exports of consumer food products are rapidly increasing. Agricultural products not affected by China’s food security policies have succeeded with the fewest barriers to trade.

Food Security in China from a Global Perspective

Funing Zhong and Jing Zhu

Food security is a primary policy priority in China, and has traditionally been the focal point of policies regarding agricultural and rural development. Understanding the evolution of food security policy in China is the key to understanding its current and potential future role in world food markets.

The WTO Dispute on China’s Agricultural Supports

David Orden, Lars Brink and Mina Hejazi

This article examines measurement of China’s market price support during 2012–15 under WTO rules and its relation to the gap between China’s domestic and international prices for wheat, corn and rice. It highlights issues that may arise in the recent U.S. complaint that China’s support exceeded its WTO commitments.