|Title||Agriculture: Liberalization or Protection|
【Abstract】 In recent years, Chinese three-dimensional rural issues concerning agriculture, countryside and farmers were gradually conspicuous, which aroused the full recognition in and outside the country.In regard of the policy options, conspicuous disagreement is rooted in agricultural liberalization and protection. Deeply influenced by western orthodoxies, many hold that China should develop its agriculture totally relying on comparative advantage, while others, with attention to the core of agriculture and the state of Chinese farmers, strongly recommend agricultural protection.Theoretically, free trade theory is based on many assumptions that are far from the truth of reality. The economic nirvana thus constructed is a perfect goal yet hard to achieve. The theory of market imperfection provides a convincing explanation of the implementing of protection policy in case of externalities and public goods, which conforms to the nature of agriculture.Practically, major developed countries inevitably adopt the policy of protection in agriculture. The elimination of agricultural subsidy leads to the ever-declining world prices of agri-produces. WTO regulation, while abandons trade-distorting policies, leaves subsidy space as exposed in green and amber boxes.To China, one basic way to improve agricultural international competition is to reinforce domestic agricultural support. Under the WTO regulations, the adjustment of the domestic supporting polices in China is not to reduce the agricultural support, but to increase the agricultural investment, and the focus should center on the improvement of agricultural competition. With regard to the great importance of agriculture to Chinese economy and its future development, protection in Chinese agriculture is not only justified, but also of great necessity.
|Subject||"agriculture, liberalization, protection, Subsidy,|
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