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t we needed to think about. In 2004, Ma Xiaohe analyzed the key point of supply and demand balance of domestic agricultural products after China’s entry into WTO. In 2000, Long Yongtu illustrated the main content of the open up produce market and the impact on the agricultural products. The international economic scholar, Jackson from methodological point of view analyzed many limitations existing in early GATT. Ralph Gomory and William Baumol explained the causes of international trade friction in terms of the development of productivity change. However, these articles were not indepth analyzed the impact on the trade of China39。s import and export of agricultural products. 1. The Current Situation of International Trade of Agricultural ProductsSince reform and opening up, the import and export of agricultural products has risen rapidly, and the import has grown faster than export. The trade volume of agricultural products reached $ billion in 2002, $ billion in 2003, $ billion in 2007. While the total value in 2007 increased six times than 1980’s. From 1990 to 2003, China maintained surplus in agricultural trade. However, the import and export of agricultural products appeared deficit in 2004, which amounted to $ billion. During the period of 2005 to 2007, the trade volume of agricultural products showed an upward trend, which reached the highest point. The import of agricultural products grew faster than export’s. Therefore, the trade of agricultural products turned surplus into deficit. From 2005 to 2007, the agricultural products of international trade deficit were $ billion, $960 million, $43 million (Luo Jiyan 2010).Wheat and rice are net exports. In recent years, as the grain supply and demand is tight, some major grain exporters take certain measures to restrict grain export, which further exacerbates the tensions in grain supply and demand. In this situation, the import and export of China’s major food remains net export, especially rice, wheat and corn, which indicates that the supply of food is based on domestic production, thus defusing the trade pressure caused by the tensions in grain supply and demand.The export of agricultural products with advantages continues to grow. Fruits, vegetables and aquatic products are traditional agricultural products, which have parative advantage for export. Although the animal product is still net export, it is an important ponent in the international trade. The export volume reaches $ billion, which accounts for 11% of total.China imports soybeans and edible vegetable oil in huge quantities for crushing at home to meet its continuously increasing demand for vegetable oil .The import volume of Soybeans exceeds 30 million tons and million tons of edible vegetable oil in recent years. The data in the Second International Conference of fuel oil indicated that from 2006 to 2007, the import volume and consumption of soybean oil reached million tons and million tons respectively, and ranked first in the world. The imports of soybean oil, palm oil and rapeseed oil were all ranked in the front row. And they accounted for 18% of global trade, including soybean oil accounted for 24% of the total (Luo Jiyan 2010).It was an important feature that the price of agricultural products was increasing rapidly in the world market. In 2007, wheat price rose 112%, soybean % and corn %. China’s merce ministry has reported that the statistics of import and export of agricultural products showed that from January to November, the import of agricultural products price index was and the export was , which indicated that the international grain price was a stimulus to the domestic market (Luo Jiyan 2010).2. The Impacts of China’s Entry to WTOJoining to the WTO was the only way to integrate with the world economy and participate in global petition. Also it was an important manifestation of the reform and opening up. Undoubtedly, China39。s farm products in the international market. Secondly, as a member state, China had a better chance to protect its own trade interests. It was eligible to resort to relevant WTO clauses and its mechanism to resolve disputes to protect its domestic agricultural production and market against the dumping of foreign farm produce. Thirdly, China was also qualified to participate in multilateral trade negotiations to fight protectionism in trade of farm products. The WTO membership dramatically reduced the amount of unfair treatment imposed on China39。s exported farm products, thus facilitating their entry to the world market and expanding their market shares. Comparative Advantage of Agricultural ProductsAfter entering the WTO, China has opened up its market for the goods and services from foreign countries. The rapid economic growth and gradual transition toward market economy have brought significant changes in production and consumption patterns and trade behavior in agriculture. Entry to WTO, the domestic market has further integrated with international market. Various tariff and nontariff have been reduced or eliminated. These meant that Chinese economy has been well developed in terms of the principle of parative advantages. Meanwhile, the agricultural products were set at lower price to meet the requirements of domestic consumers. China is a large agricultural country, primarily producing grain, peanut, meat, rapeseed, fruit, cotton and so on, which ranks first in worldwide. China has abundant labor force. These resource endowments gave China a certain parative advantage in laborintensive goods in the world markets. Laborintensive crops, such as vegetables, tobacco, cotton, and fruits were better suited for Chinese agriculture than grains. As China’s entry into WTO has changed the trade environment, the advantage agricultural products were exported greatly. From January to May 2002, China39。s agricultural products, especially the food price has been to increase to reach the international market level. Af