When China Joins WTO, Ag Trade Partners Will Benefit
China's major agricultural trade partners would be among the biggest beneficiaries when China joins the World Trade Organization, according to a study by Iowa State's Food and Agricultural Policy Research Institute (FAPRI). When China joins the WTO, per capita consumption of pork, poultry, and dairy in China is expected to increase as food prices decrease. An increase in agricultural trade would benefit major exporters of oilseeds, pork, and poultry, which include the United States. Chinese producers, on the other hand, would receive lower prices and experience increased competition from international suppliers. The FAPRI analysis expects China to produce fewer crops and livestock products, with the exception of cotton and soybeans. While rural incomes are assumed to decline, the results do not indicate a sharp decrease in China's ability to feed itself or a major increase in world food scarcity. The FAPRI analysis includes coverage of more than 20 agricultural and food commodities. The report, "China's Accession to the WTO: What Is at Stake for Agricultural Markets?" is available online, or for a print copy, call (515) 294-7519.