China's Corn Exports: Business as Usual, Despite WTO Accession

by Fred Gale

A decline in China's corn exports was expected to be a main effect of that country's accession to the World Trade Organization in December 2001. Instead, China's corn exports continued at a near-record pace during 2002. China has canceled direct export subsidies, but other policies have replaced them, although details of these new measures are not clear. This year's rising international prices have given an added boost to China's corn export program and delayed an expected increase in China's corn imports. In the long run, government policies that encourage exports may prove too costly to continue, and restructuring of China's corn and livestock sectors may reduce the flow of exports.

Keywords: Corn, maize, China, exports, imports, price, subsidy, tariff rate quota, World Trade Organization, WTO, transportation, value added tax, VAT

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• China's Corn Exports: Business as Usual, Despite WTO Accession

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