China's corn export will be directly affected by entering WTO

Introduction: on December 11, China officially became a member of the WTO China's accession to the WTO will have a significant impact on the corn market at home and abroad Take the recent reports of foreign media on the cancellation of 1 million tons of corn exports announced by Jiliang group and the report of the U.S Department of agriculture showing that China has bought up to 500 thousand tons of U.S corn Such explosive news has made the corn futures market in Chicago soar It can be seen that China's every move has a great impact on the international market Next, the author focuses on the impact of China's accession to the WTO on the export of corn Since China's corn production had a great harvest in 1998 and 1999, at the end of 1999, in order to encourage the expansion of exports, the state decided to subsidize exports Since then, China's corn entered the international market at a low price, and replaced the United States as the largest supplier of South Korea and Malaysia, while occupying a certain share of the Japanese market In 2000, China exported 10.5 million tons of corn, 6.02 million tons to South Korea and 2.1 million tons to Malaysia, while South Korea and Malaysia imported 8.5 million tons and 2.4 million tons of corn, respectively China's share of corn in these two markets reached 70% and 87% respectively Since this year, the export volume of corn in China has declined significantly compared with the same period of last year According to customs statistics, China exported 4.86 million tons of corn from January to October, of which 2.73 million tons were exported to South Korea and 1.03 million tons were exported to Malaysia Although China's share of corn in these two markets has declined compared with that in 2000, it still accounts for a high proportion In addition, in the Japanese market, the export volume in the first ten months of this year was 350000 tons, three times that of the whole year in 2000 In the past two years, China's export of such a large amount of corn is mainly due to government subsidies The subsidies of up to $44 per ton make China's export price of corn very competitive in the international market However, with China's accession to the WTO, China has promised to cancel the export subsidies for corn, which means that China's export price of corn will rise from the current 105 US dollars / ton to 149 US dollars / ton, which is unacceptable to international buyers At present, the FOB price of American corn is only more than 90 US dollars Even though the export price of corn in China has not risen to such a high point, the price after the elimination of subsidies will certainly be much higher than the current price, so the export competitiveness of China's corn will be lost, and the export of corn after China's accession to the WTO is bound to be reduced
Of course, we also have certain export advantages First of all, domestic corn is the non genetically modified corn favored by many countries in the world, which has considerable attraction to many countries, especially countries like Japan Second, China's traditional corn exporting countries are mainly Asian markets, and we have transportation distance advantage (freight advantage) Third, with Taiwan's accession to the WTO In addition, in the previous period, the number of high-level exchanges between the major corn Companies on both sides of the Taiwan Strait increased gradually, so it is possible for corn Companies in the mainland to open the door of Taiwan Finally, we believe that in order to reduce the huge corn inventory, the state will introduce some measures in addition to subsidies to encourage exports In a word, China's corn export will certainly be impacted after China's accession to the WTO, but we believe that we will minimize this negative impact through various efforts.