2 According to the report by the Ministry of Agriculture of China, in 2010 the total export value of agricultural products reached 35.6 billion USD 3 times bigger than 2001, in 2011 reac
Trang 1INTRODUCTION
1 Rationale
Agriculture is an economic sector that plays a particularly important role in the
socio-economic development of each country It not only provides food for human needs, but also
raw materials and human resources for non-agricultural activities The development of the
agricultural sector will create a large market for industry and services; concurrently, it also
plays an active role in increasing foreign exchange in exports and the sustainable
agricultural development will greatly contribute to environmental protection
In developed countries such as the US, Western Europe and Japan, although
agriculture only accounts for a very small proportion of GDP (1-5%), these countries still
pay great attention to the development of agriculture as their development are
modern-and-sustainable-oriented
After four decades of reform and economic openness (since 1978), along with the
overall growth of the economy, Chinese agriculture has achieved important achievements It
has shifted from self-sufficiency to commodity production and has grown towards the world
market and become one of the largest food manufacturing countries in the world Although
it only accounts for more than 7% of the world's cultivated area, China can balance the food
amount for more than one fifth (22%) of the world's population (Trinh Quoc Cuong, 2008) 1
China can not only meet most of the domestic food demand but also achieve positive results
in agricultural exports2
Today, the sustainable development of agriculture is a necessary requirement and a
difficult task for Vietnam in the context of integration In the world market, Vietnam is facing
fierce competition in agricultural products as well as being required to comply with
regulations in the production and export of agricultural products proposed by WTO
Vietnam and China are two countries located in Asia, despite the different size and
position in the world economy, the two nations share some common features in agricultural
development Concurrently, China and Vietnam also have many similarities in institutions
and policies for economic development in general and agriculture in particular when both
are members of WTO The similarities in economic institutions between the two countries
prove that China's experience in the process of preparing for joining, negotiating and
countering after becoming a member of WTO can be useful lessons for Vietnam (Le Huu
Tang and Luu Ham Nhac, 2002)
Therefore, the study of China's lessons and experience in agricultural development
1 Experts stated thatt China can feed more than 20% of the world's population, while owning only 9% of the fertile land and 6.6% of the world's freshwater reserves This is possible due to
increased yields of many crops, for example, rice productivity in China is 50% higher than the global average and wheat productivity is 55%
2 According to the report by the Ministry of Agriculture of China, in 2010 the total export value of agricultural products reached 35.6 billion USD (3 times bigger than 2001), in 2011 reached
60.75 billion USD, in 2012 the total export and import turnover of agricultural products of China reached 175.77 billion USD (up 12.9% compared to 2011), of which exports reached 63.29
policies after their official membership in WTO can produce practical implications in both theory and reality for Vietnam in the process of enhancing the country's competitiveness, comparative advantage of the agricultural sector as well as agricultural commodities that Vietnam is and will be exporting to the world market towards a sustainable orientation
2 Research objectives
General objective: The research explained the possibility of applying experience
obtained from Chinese agricultural development policies after joining WTO for Vietnam
Specific objectives
- Systematize literature review and the practical basis of agricultural development policies in various countries after their participation in WTO
- Evaluate strengths and weaknesses as well as impacts of China's agricultural development policies after joining WTO on agriculture, synthesize the experience and lesson
- Explain the possibility of applying the experience achieved from China's agricultural development policies after joining the WTO to apply for Vietnam
3 Research object and scope
3.1 Research object
The research object was agricultural development policies in China after joining WTO
3.2 Research scope
The thesis studied the content of Chinese agricultural development policies after its participation in WTO However, the thesis did not study all policies (including domestic and foreign policies), only selected and focused on a number of policies related to foreign activities, specifically:
- Policy for tariff and non-tariff barriers
- Policy for export subsidies
- Policy for domestic support
- Policy to establish and complete technical barriers to trade (TBT)
4 Research questions
(i) How does WTO membership directly affect the agricultural situation and agricultural development policies in China?
(ii) What are the fundamental changes in China's agricultural development policies after joining WTO? What are the impacts on China's agricultural sector? Which industry is most affected and what are the lessons learned?
(iii) How Vietnam can apply the lessons and experience in China's agricultural development policies after joining the WTO?
5 Research approach and methods
5.1 Research approach
From theory to reality
Trang 2The study approached the system, built a research framework to analyze contents of
the thesis
5.2 Research methods
Analysis, synthesis, comparison and inference were used to find out the achievements
as well as limitations in China's agricultural development policies; similarities and differences
in commodity agricultural production between China and Vietnam, similarities and
differences in the implementation of commitments with WTO Within the study, the author
mainly used the comparative method to explain the possibility of applying experience learned
from Chinese agricultural development policies to apply for the situation in Vietnam
The research also applied historical method and logical method Specifically, in
historical method, the author perceived things and phenomena according to the
chronological process (through different time milestones), and the logical method enabled
the author to connect all events' sequences and discover the nature of research object
Periodization was also used to study more deeply and discover characteristics of objects and
phenomena in specific historical periods
Modeling was also utilized in building the research framework, and concurrently
analyzing the cause-and-effect relationship of agricultural development policies with
achievements in the agricultural sector in China in the stated period
5.3 Data collection and processing
Data related to China was collected from China's Ministry of Agriculture, General
Statistics Office, General Department of Customs, and Chinese Statistical Yearbook
Data related to Vietnam was collected from Vietnam's Ministry of Agriculture and Rural
Development, Ministry of Finance, Ministry of Planning and Investment, General Department of
Customs, General Statistics Office and Vietnam Statistical Yearbook
Data processing: The research used descriptive statistical method and established tables
and figures
6 New contributions of the thesis
New contributions in terms of theoretical aspect
(i) The thesis provided the framework construction of agricultural development
policies in the context of Vietnam’s participation in WTO Specifically, the
framework should include the basis to select policies, implementation of policies,
performance results and application conditions
(ii) The research used a combination of theoretical and practical research, interpolation
and extrapolation to study the fluctuations of Chinese agriculture, evaluate the
current situation of Vietnamese agriculture and the ability to selectively apply
experience obtained from those policies in Vietnam after joining WTO
New contributions in terms of practical aspect, new discoveries and recommendations
Firstly, China's agricultural development policies had been flexibly modified to adapt to commitments with WTO, and the synchronous coordination in the implementation of those policies produced positive effects on the production and import and export of Chinese agricultural products
Secondly, China's agricultural development policies after joining WTO had practical implications with Vietnam The integration into WTO produces various opportunities and challenges in the new context and Vietnam can selectively learn the experience obtained from China to establish policies, effectively apply modifications, ensure the appropriate adaption to requirements by WTO and promote comparative advantages of Vietnam's agricultural production, especially in terms of the policy implementation
Thirdly, the thesis proposes the applicability of Vietnam to build agricultural development policies post-WTO: (i) Vietnam's agricultural development policies should concentrate on WTO-authorized non-tariff instruments: (ii) Entering the world's agricultural market, Vietnam should produce early warnings to respond to foreign technical barriers to trade (TBT), and improve TBT in agriculture; (iii) Domestic support policyies should be orientated towards focusing, strengthening WTO's classification tools in order for Vietnam's agriculture to sustainably integrate and reach a new height; (iv) The implementation of the agricultural development policies should have the coordination among agencies, ministries and sectors; local government should focus on perfecting production planning and the system of technical standards as well as encouraging all forms of association in agricultural production and processing
7 Structure of the research
In addition to the introduction, conclusion, list of tables, figures, list of abbreviations, list of references, list of research related to the thesis topic and appendixm, the study is divided into four chapters with the following structure:
Chapter 1: Research overview Chapter 2: Theoretical and practical basis for agricultural development policies in countries after their participation in WTO
Chapter 3: Current situation of agricultural development policies in China after joining WTO
Chapter 4: The ability to apply lessons learned from China's agricultural development policies after joining the WTO in the context of Vietnam
8 Limitations of the research
Trang 3- China's agricultural policies after joining WTO are large-scaled covering many problems Therefore,
in some aspects or major issues, the thesis was unable to deeply analyzed
- China is a large country having different cities and provinces with different and diverse development
Due to the lack of resources for practical survey, there are still some limitations when studying and
evaluating the results of policy implementation
- The US-China trade war also affects China's agricultural policies, but the thesis has yet to mention all
of them
- Due to the author's own conditions related time and other aspects, certain shortcomings are
inevitable
CHAPTER 1 RESEARCH OVERVIEW 1.1 An overview of previous studies
Regarding China's agricultural development policies after joining the WTO, there are
various domestic and foreign research on this topic Based on the contents that are limited in
the research scope, each aspect of these policies was studied by many authors
J Huang et al (1999, 2001, 2002, 2004, 2006, 2007, 2011, 2013, 2014, 2015, 2017,
2018) studied changes in China's agricultural development policy after becoming a member
of WTO In each research, groups of authors evaluated one or several different aspects
related to Chinese agricultural policies
Some authors conducted intensive research on some specific aspects such as Ni
(2013), F Cheng (2008) studied on domestic subsidy policies, agricultural reforms; Martin
(1999) analyzed agricultural trade policies Chen (2002) focused on the achievements of
agriculture; Liu (2002) outlined the objectives and analyzed some of the WTO-linked
agricultural policy adjustments Pham Thi Thanh Binh (2018) concentrated on a number of
policies for sustainable agricultural development
In terms of Vietnam's agricultural policies after joining the WTO, authors such as
Nguyen Tien Dung (2010), Trinh Thi Ai Hoa (2007), Ngo Thi Tuyet Mai (2011), Nguyen
Vinh Thanh (2010), Vu Van Hung (2013) are the ones who conducted research In each
study, the authors and colleagues explored a specific topic such as agricultural export
policies, agricultural product consumption policy, tariff policy adjustments and agricultural
subsidies or reviews by OECD in Vietnam's agricultural policies
1.2 Comments extracted from the overview of previous studies
Regarding China's agricultural development policies after joining the WTO,
above-stated research by domestic and foreign scholars have not been analyzed comprehensively
and systematically in terms of theoretical and practical basis These studies mainly
analyzed the pratical aspect of policy implementation or adjustments of some content in
these policies
In fact, there are a lot of research on China's agriculture before and after the country joined WTO in 2001 However, these studies by foreign athours:
i Regarding China's agricultural development policies after joining the WTO, above-stated research by domestic and foreign scholars, they have not been analyzed comprehensively and systematically in terms of theoretical and practical basis These studies mainly analyzed the pratical aspect of policy implementation or adjustments of some content in these policies without analyzing the theoretical basis Some explored primary achievements of these policies, but remained to discover the limitations on agricultural production or import-export as well as Chinese people’s lives
ii They had yet to analyze systematically similarities and differences between China and Vietnam in terms of economic reform and renovation process; agricultural production and the implementation of agricultural development policies when the two countries joined WTO;
iii They had yet to evaluate inclusively from a viewpoint of economic history This means the research should be able to extract lessons about the success or limitations of China's agricultural development policies before, during and after their participation of WTO, and concurrently commentary the applicability of these lessons in the context of Vietnam
Therefore, the author selected "China's agricultural development policies after joining WTO: Lessons and the applicability in the context of Vietnam" as the topic for the thesis
CHAPTER 2 THEORETICAL AND PRACTICAL BASIS OF AGRICULTURAL DEVELOPMENT POLICIES IN COUNTRIES AFTER THEIR PARTICIPATION
IN WTO 2.1 Practical basis of agriculture development policies in countries after their participation
in WTO
2.1.1 An overview of agricultural development policies
2.1.1.1 Definition Definition of Policies
The term "policy" is commonly used in books, newspapers, documents, mass media and in social life All socio-economic entities have their own policies Individuals, organizations, businesses, the Party, countries, union of countries or international organizations all have their own policies
Agricultural development policies
Trang 4Agricultural development policies are the combination of economic measures and
other measures of the State (from the central to the local level) affecting agriculture and
sectors and fields directly related to agriculture to achieve certain goals, with certain
conditions for implementation and within a defined time limit (Pham Van Khoi, 2007)
2.1.1.2 The role of agricultural development policies in countries after their participation in
WTO
- Firstly, to create a legal and economic environment to encourage the development
of agriculture in accordance with the objectives of each period
- Secondly, to regulate and limite inappropriate development, remove negative trends
in industries and at certain times - limitations of the market economy (spontaneity in
production business, environmental damage, )
- Thirdly, to promote the role of democracy, encourage the combination of
agricultural development with the economy, culture and society
2.1.1.3 Objectives of agricultural development policies in countries after their participation in
WTO
• To fulfill commitments when joining WTO
• To exploit factors that benefit the country
• To develop a sustainable agriculture in international integration
2.1.2 Theoretical basis of agricultural development policies in countries after their
participation in WTO
Theory of Comparative advantage
Theory of Sustainable development
2.2 Pratical basis of agricultural development policies in countries after their participation in
WTO
2.2.1 Regulations of WTO for agriculture
a Open Door Policy
b Domestic support policy
c Export subsidies policy
d Agricultural technical barriers to trade (TBT)
e Veterinary, phytosanitary and food safety
2.2.2 The situation of agricultural development in each country, trends and prospects of
the world agricultural market in the context of international economic integration
- The situation of agricultural development of each country in international economic
integration
The formulation and implementation of national agricultural development policies in
each period based on the targets of the industry as well as the infrastructure conditions of
each country
- Major trends in the world agricultural market
Currently, population growth is a major challenge for the global economy It not only affects the world food security in general but also the food security in a large number of countries in particular
Secondly, the world agricultural market tends to gradually shift to developing countries, especially Asian countries These countries increasingly account for a high proportion in the value chain of international trade in agricultural products
Thirdly, in the world agricultural market, the import and export value of processed meat products, grease, milk of developing countries is rapidly increasingly
Fourthly, the development of the world agricultural market in the future will be strongly influenced by international trade negotiations
Fifthly, the fluctuation in prices of agricultural products on the world market remains
at a high degree
- Prospects of the world agricultural market
Being able to recognize and grasp all prospects of the world agricultural market can
be served as the basis for countries to formulate their agricultural development policies, based on those prospects to make appropriate decisions in developing strategies for general development of the economy Specific agricultural development policies in each country must be clearly and closely planned to ensure the production development process, to be able to meet domestic demands, and expand to the world market
CHAPTER 3 CURRENT SITUATION OF CHINA'S AGRICULTURAL DEVELOPMENT CHINA
AFTER JOINING WTO 3.1 An overview of agricultural development and problems when China joined WTO
3.1.1 Some major agricultural development policies of China before joining WTO
3.1.1.1 Household responsibility policy in agriculture
The agricultural and rural economic reforms in China began in late 1978, was established on the basis of household responsibility system (HRS) The HRS reforms removed land barriers and contracted agricultural land to households, mainly based on family size and the number of labors in households
3.1.1.2 Domestic output price policy and market liberalization
China has gradually changed the production incentive mechanism through the decision to decentralize and adjust the price policy The first price adjustment was made in
1979 After that, the purchase price of agricultural products increased significantly since
1980 Many studies by Lin (1992), Fan (1991), Huang and Rozelle (1996), Fan and Pardey (1997) affirmed strong effects of changes in price and output in the early and final years of transition China has removed all plans to buy agricultural products such as rice, wheat, corn
Trang 5and cotton All such products can only be bought and sold through the marketplace
3.1.1.3 Rural area development policy and labor market
The movement of labor from rural to urban areas is central in the country's efforts in
modernization The contribution of rural enterprises (Township and Village Enterprises) to
GDP increased from less than 4% (1970s) to over 30% in 1999 HTownship and Village
Enterprises dominated the export sector during the 1990s (NBSC, 2001) These enterprises
drew about 35% of rural workers out of the agricultural sector In addition to wage for
employment in rural areas, a significant number of self-employed rural workers grew,
increasing from 8% in 1990 to 13% in 2000 (De Brauw et al., 2002)
3.1.1.4 Agricultural trade policy
In addition to important changes in foreign exchange policy, China carried out
some fundamental reforms for the international trading system Lower tariffs and the
removal of import and export barriers began to have vital effects on the trade in
agricultural products of China in the 1980s Firstly, it gradually reduced the level of
protectionism in agricultural commodities controlled by the State and state-owned
enterprises (Huang and Chen, 1999)
3.1.1.5 Policy for the development of science and technology and agricultural infrastructure in
rural areas
Before the economic reform, China's agricultural investment focused on building irrigation
networks and rural infrastructure After the 1970s, China invested more in exploiting and using its
groundwater resources (Wang et al., 2006)
Agricultural research in China was largely state-run and they often focused on food policy
Most crop breeding programs focused on cereals (rice and wheat) With the motto of national food
self-sufficiency, the main goal of research programs in China aimed towards high productivity
3.1.2 An overview of China's agricultural production before joining WTO
3.1.2.1 Agricultural production of China before joining WTO
For a country with about 1.4 billion consumers with limited natural resources, China's
food imports prior to WTO participation remained relatively low China was entirely
self-sufficient and is a net exporter of several agricultural products, including food and beverages,
animal products, vegetables, fish and seafood, tea, and fruits
Table 3.1 WTO Agricultural import and export of China before joining WTO (Unit:
USD billions)
Agricultural products
Annual trade, 1995-2000
Agricultural products
Annual trade, 1995-2000
Note: 1 Preserved bakery products, food and beverage;
2
Live animals, meat, milk, eggs, honey, and other animal products;
3
Cereals, food and byproducts, flour and products of the milling industry;
4
da Silk, animal hair, cotton and fabric, leather and tanning
Source: ERS analysis of China customs statistics reported in Hsin-Hui Hsu and Fred Gale, China: Agriculture in Transition, USDA/ERS Agriculture and Trade Report WRS-01-2, November 2001, appendix
tables 5 and 6.
Despite the limited agricultural land, China maintained a high degree of food production thanks to its highly intensive farming techniques, two to three crops a year, and the effective use of large amounts of fertilizer and labor However, agricultural production in China showed the unsustainability due to the fact that Chinese farming relies on intensive labor and natural resources Additionally, China's farm economy was still relatively small and mainly household farming
3.1.2.2 China's growth and agricultural structure before joining WTO
The trends in China's agricultural trade and economic structure over the two decades were similar to those of other developing countries prior to WTO participation Chinese agriculture has shifted in a direction which is more suitable for its resources The commitments
in protocol to join WTO by the Chinese government were also consistent with the country's long-term reform plan
3.1.3 Challenges for China's agricultural sector when joining WTO
Firstly, China's agricultural industry has been increasingly and deeply integrated into the world agriculture, and the guarantee of the development of China's domestic manufacturing industry has become increasingly important
The second challenge for the Chinese economy is the supply-demand imbalance and
the increasingly serious issue of product shortages
The third obstacle is that the input cost and other agricultural production fees tend to increase rapidly
Trang 6Fourthly, China has to face the imbalance in the labor and employment structure in rural
areas, especially the surplus rural labor and the lack of agricultural labor structure
The fifth hindrance for Chinese agriculture is that agricultural modernization has not
kept pace with industrialization and urbanization
In addition, agricultural productivity has only increased at a slow rate
The pressure to increase income for farmers is increasing
3.2 Current situation of China's agricultural development policies after joining WTO
3.2.1 Chinese agricultural development strategy and perspective
China's five new strategic development trends are: sustainable agriculture, smart
agriculture, large production agriculture, market-based manufacturing agriculture, and
genetically modified agriculture China has built seven strategic areas towards sustainable
development in the context of integration including biotechnology, information technology,
materials
3.2.2 Main characteristics of China's agriculture and rural areas
Firstly, China's agricultural resources are relatively limited
Secondly, agriculture remains the primary source of income for millions of farmers
and is also the essential means of livelihood for Chinese farmers
Thirdly, a large percentage of Chinese farmers still live below the poverty standard as
their per capita annual net income were only 2,300 Yuan (about $339) The per capita net
income of Chinese farmers in 2010 was 5,919 Yuan (about $874), less than one third of the
disposable income of urban residents
Fourthly, with a population of roughly 1.42 billion3, China is particularly concerned
with domestic food security
Fifthly, rapid industrialization and urbanization in China has increased industrial
productivity which clearly polarizes the Chinese economy
Sixthly, the development of rural and social infrastructure significantly was inferior
to that of urban areas and big cities (Ni, 2013)
3.2.3 Common characteristics in Chinese agricultural development policies
China's agricultural development policies and adjustments in agricultural
development policies can be summarized in the following aspects:
Firstly, they aim to accelerate the construction of a new agricultural management system
based on a combination of households, cooperatives and agricultural enterprises
Secondly, regarding the contracting policy, ownership rights will be assigned to
farmers They are encouraged to develop a production system where responsibilities and
benefits are closely linked to their results
Thirdly, they promote a more equitable distribution between urban and rural public resources, and limit the gap between the rich and the poor
Fourthly, they are used to adjust objectives in national food security In addition to the central goal of improving farmers' incomes in recent years, the foundation of agricultural policies has been the government's primary focus on food self-sufficiency and guarantee in national food security
Fifthly, the tariff policy as well as agricultural subsidies have been implemented according to the required commitments when China becomes a member of World Trade Organization
Sixthly, changes in agricultural development policies aim to actualize high-tech agriculture
Additionally, China's agricultural policies aim to improve production productivity and sustainable development
3.2.4 China's agricultural development policies after joining WTO
3.2.4.1 Tariff policy and non-tariff barriers
(i) Tariff policy China implemented tariff reductions along with tax exemptions to achieve a wide range
of policy objectives Specific tax reductions and exemptions were determined by the National Assembly and all tax reductions and exemptions were applied on the basis of the most favored nation (MFN)
(ii) Non-tariff barriers Non-tariff barriers include tariff quotas, import licenses
3.2.4.2 China's agricultural subsidies policy
Table 3.14 Government spending on Chinese agriculture in the period of 2000 -
2014 (Unit: billion CNY)
spending
Proportion
of fiscal spending
Spending on agricultural production activities
Spending on infrastructure construction
Spending on science and technology
Spending
on disaster relief
Spending on social welfare and agricultural and rural development
Trang 72008 595.55 9.5 226.01 207.28
2013 1,300
2014 1,400
Source: China Statistical Yearbook on the Countryside and China Rural Statistical Yearbook 2011
• China's "green box" policy
- Policy for direct subsidies for cereal farmers
- Environmental protection support policy
- The scale and extent of China's green box policy (Table 3.15)
- Comprehensive policy for agricultural input subsidies
- Policy for purchase subsidies of agricultural machines
- Policy for subsidies of seeds and plant diversification
- Minimum purchase price policy
- The scale and extent of China's amber box policy (Table 3.19a, b)
According to WTO's announcement on China, the budget for "amber box" policy of
this country increased to 78.86 billion Yuan in 2008, accounting for about 1.5% of total
agricultural output This “amber box” policy was provided for seven main agricultural
products including wheat, rice, corn, soybeans, cotton, canola and pork
Amber box policy was measured and conceptualized through aggregate measurement
of support, in which China's final AMS commitment being zero Therefore, the maximum
possible amount for China's amber box policy was at the minimum level (de minimis)
China's commitment to WTO establishes a minimum of 8.5% of production value for
trade-distorting subsidies
• China's policy for export subsidies
Before joining WTO, China offered export subsidies for corn and rice with the
figures being respectively 368 yuan per ton in 1999 and 378 yuan per ton in 2001 However,
after joining WTO, China was forced to stop applying export subsidies to comply with the
organization's commitments
3.2.4.3 Policy for designing and completing commercial technical barriers to trade in agriculture
(TBT)
TBT had become the primary means and a form of superior protection for domestic
trade China when joining WTO had to face many challenges in terms of breakthroughs in
foreign technical barriers and protection of the domestic market
• Major technical barriers to trade for China's exports
(1) Technical standard barriers
(2) Packaging and labeling
(3) “Green Barriers”
• China's responses to overcome technical barriers to trade
Firstly, China developed a strategy for the implementation of standardization, constructed a solid technical regulation and standard system to ensure sustainable development Secondly, they proactively established and improved the mechanism to warn about TBT Developed countries and some developing countries all seriously followed the monitoring and study of TBT measures by trading partners and some had even build their own warning mechanism for TBT Thirdly, China focused on bilateral, multilateral and regional cooperation mechanisms to facilitate trade activities
Trang 8Table 3.15 China’s green box policy
Unit: Billion CNY
Year General Service Reserve of food
security Domestic food subsidies
Income support Disaster relief Pension programs Environmental programs
Regional support programs
Total amount of green box policy
Source: China’s notification to the WTO (1999-2001, 2002-2004, 2005-2008, 2009-2010, 2011-2016).
Table 3.19b China’s amber box policy (Million CNY) Description
AMS Production
Production
Production
Production
Production
Production Value
Protocol specification AMS (PS AMS)
Total of PS AMS
Corn 7,324 376,390 9,109 442,450 51,970 475,520 75,077 479,170 107,701 431,490 57,166 433,720 Cotton 18,820 157,450 40,609 147,780 40,440 142,200 31,212 130,930 30,528 104,140 16,844 79,010
Pork 4,598 1,222,540 5,088 1,243,590 1,037 1,256,060 770 1,229,760 765 1,285,970 73 1,413,340
Rice 8,103 526,010 10,628 571,490 41,745 601,460 37,935 619,300 38,350 612,910 27,793 627,100
Soybean 3,581 65,350 5,789 64,080 2,660 61,690 7,583 60,210 6,580 53,760 7,347 53,390
Wheat 5,049 248,250 12,990 264,100 9,644 289,160 22,298 307,690 19,025 313,150 19,539 300,560
Non protocol specification AMS (NPS AMS)
Purchase support for agricultural machines
Surcharge (-)
TOTAL AMS
Source: China’s notification to the WTO 2011-2016
Trang 93.3 Evaluation of China's agricultural development policies after their participation in
WTO and theirimpacts on agriculture
After joining WTO in 2001, the prosperity of foreign trade played a very important
role in the "take off" of Chinese economy, which made China become the second largest
economy in the world, only after the US
3.3.1 Evaluation of the implementation of China's agricultural development policies after
joining WTO
3.3.1.1 Achievements
(i) China carried out effectively its commitments which met WTO's requirements
The roadmap of China's tariff reduction met WTO's requirements; the tariff reduction
rate was also conducted in accordance with all the commitments when China joined WTO
Export subsidies were eliminated after China officially became a member of the WTO since
2001
(ii) China's agricultural subsidy policies placed a great emphasis on developing
agricultural infrastructure and flexibly using "amber box” tools
Data from the "Green Box" policy and China's Three Rural Issues proved that, after joining
the WTO, China had always increased its investment in a fairly synchronous manner in
infrastructure in general and agricultural infrastructure in particular Road traffic system, rural
traffic, irrigation systems had always been China's top priorities
(iii) China obtained remarkable achievements in agricultural production management and
organization
Organization forms of agricultural production had been developed in a more
diversified manner Vertical management in agricultural production increased rapidly and
the scale was also expanded (Zhen & Xiangzhi, 2014) The agricultural service system
was also been significantly improved
3.3.1.2 Limitations
(i) The value of domestic support measures to agriculture remained low
(ii) Some policies had distorted the market
(iii) During the implementation process, China still violated some of WTO's commitments
(iv) The design of the agricultural policy system still had some limitations
3.3.2 The impacts of China's agricultural development policies after joining the WTO on
agriculture
3.3.2.1 Positive impacts
i Domestic subsidy policies contributed to increasing resources for agricultural
development and overall growth, promoting the development of agricultural science and
technology
ii The policies increased the value of agricultural output, and China can provide food for
one-fifth of the world's population
Table 3.21
Some results of China's agricultural development policies in the period of 2000-2018
Year
Agriculture spending (10 9
CNY)
Total food production (10 6
tons)
Net income per capita of farmers (CNY)
Total import-export turnover of agricultural products (10 9 CNY)
Source: Chinese Agricultural Yearbook; Statistical tables, chapter 8, WTO, FAO STAT
iii Sub-policies in the "green box" policy, especially the increase in investment in science and technology along with the urbanization process, had promoted the transformation of Chinese agriculture, the form of production organization in a more positive and modern orientation
iv The removal of tariff and non-tariff barriers of China towards the world market helped China expand their import and export markets, boosting import and export turnover
v Agricultural support policies, income subsidies and increased investment in agricultural spending in China contributed to hunger eradication, poverty reduction and farmers' income improvement
vi Policies for investment in science and technology development, infrastructure development, design and completion of agricultural technical barriers to trade (TBT) promoted competitiveness and comparative advantage for Chinese agriculture
vii Environmental protection policies and the process of completing agricultural technical barriers
Trang 10to trade (TBT) change China's habits in agricultural production in a positive direction
Through evaluation, some remarks about China's agricultural development policies after
joining China can be drawn Group of sub-policies under "green box" policy had the most
considerable effects on production outcomes and the country's achievements Notably,
policies for science and techonology development as well as for infrastructure played an
important role in agricultural achievements They are followed by rural subsidies and
consultancy, In addition, amber box policy, particularly such as input subsidies, support for
agricultural machines or price support also contributed to China's achievements in
agriculture
Concurrently, China's agricultural development policies after joining WTO also focused
on promoting comparative advantage and were associated with the goal of sustainable
development The comparative advantage of Chinese agriculture was the labor-intensive
sector They could increase the export of products from labor-intensive industries such as
seafood, fruits, vegetables and silk These were also products that China had had a trade
surplus for many years Additionally, they also imported products with less comparative
advantage such as oilseeds and vegetable oils (J Huang et al, 2018)
Also, after joining WTO, China's agricultural development policies had aimed at a
sustainable agriculture This is clearly shown through policies such as infrastructure
development, science and technology research and development, and environmental policies
These policies made China's total factor productivity (TFP) in agriculture being quite high,
accounting for an average of 83% of agricultural growth (compared to about 83% in Thailand
and 92% in Malaysia) (Date of Institute of Strategy and Policy for Agriculture and Rural
Development - IPSARD Vietnam and World Bank - WB)
3.3.2.2 Limitations
(i) The unequal distribution of programs for subsidies, investment and application of
science and technology in different fields of agriculture and regions had led to the
difference in development levels between regions and groups of resident and therefore
increased income inequality
(ii) Many challenges still remain in the economy
(iii) In the economy, there is an imbalance between supply and demand of agricultural
products
3.4 Lessons learned from China's agricultural development policies after joining WTO
3.4.1 WTO Agricultural development policies should have the flexibility and adaptability
in fulfilling commitments with WTO
Flexibility is shown in changes, adjustments in tariff policies, non-tariff barriers or
government subsidies for agriculture For example, China pledged not to subsidize exports of
any kind after joining WTO Instead, the country's government increased domestic subsidies
through income insurance, pension programs, interest rate or three rurals, in order to limit
damage for their inferior fields in agriculture when joining the world market
3.4.2 Agricultural development policies should focus on sustainable development and continuously improve competitiveness in integration
After joining WTO, China's agricultural development policies always orientated towards the sustainable development Specific policies can be listed as policies for investment in science and technology development, green agriculture, and policies to improve income for farmers, or policies to protect the environment Concurrently, those policies also aimed to improve competitiveness through increasing agricultural labor productivity or accelerating agricultural and rural industrialization
3.4.3 Agricultural development policies should orientate towards a sustainable development and continuously improve competitiveness in integration
To fulfill commitments opening the agricultural market in accordance with WTO rules for all members, China implemented a roadmap of tariff reduction and non-tariff barriers Goods in countries around the world, especially WTO members entering the Chinese market have become more diversified, which created a large supply source for the world's most populous market And in the context of free trade and deep integration into the world economy, China paid great attention to its comparative advantage
3.4.4 Agricultural development policies should take advantage of the WTO's preferences and grace, and at the same time pay attention to minimizing the limitations and negatives arising in the WTO integration
Special offers by WTO for developing countries can help countries to reduce poverty, create jobs and integrate into the global trading system In China, there was an imbalance in food supply and demand To overcome this challenge, China's agricultural policies recently shifted from intensively supplying to focusing on satisfying domestic demand This change had reduced the pressure on Chinese agriculture (Huang et al., 2017) China also aimed at relying on science and technology to overcome the limitations existing in agricultural production and promote this industry to thrive in the new context
CHAPTER 4 THE APPLICABILITY OF EXPERIENCE LEARNED FROM CHINA'S AGRICULTURAL DEVELOPMENT POLICIES AFTER THEIR PARTICIPATION
IN WTO FOR VIETNAM 4.1 Some of Vietnam's agricultural development policies after joining WTO
4.1.1 The context of Vietnam's agriculture when joining WTO
4.1.1.1 Agriculture with small production is dominant and scattered 4.1.1.2 The competitiveness of Vietnamese agricultural products in the world market is very low
4.1.1.3 The application of science, technology and agricultural mechanization remains at a low degree 4.1.1.4 Approach of subsidies in developed countries around the world