On China's corn about to enter WTO

Introduction: the fourth WTO ministerial conference was held in Doha on from November 9th to 13th The relevant agreement was signed on 11 and China officially became a member of the WTO As a big corn producer in China, whether the current international and domestic forms are conducive to the opening of corn industry deserves our consideration The author mainly considers the following aspects 1 The possibility of RMB devaluation 2nu was first disclosed in the report released by the monetary policy analysis group of the central bank on October 29 Influenced by the "9.11" event, the US dollar exchange rate is likely to continue to decline It is recommended in the report to maintain the stability of RMB exchange rate According to this analysis, the above suggestions may imply that the RMB, which has been "pegged" to the US dollar, will follow the decline of the US dollar and "passively depreciate" Of course, the final currency trend still depends on national policies, but at present, the devaluation of RMB will greatly cushion the impact of China's accession to the WTO on the domestic market, so that China's exports will benefit from it; and because it belongs to "passive devaluation", it does not violate the commitment of the Chinese government that "RMB does not devalue" To sum up, once the RMB devalues, it will enhance the market competitiveness of domestic corn, alleviate the impact of entering WTO, and create a good environment for export 2nu 2 The WTO has preferential policies for China at present 2nu China's accession to the WTO as a developing country is of great significance It means that China can enjoy preferential policies of developing countries, protection of infant industries, export subsidies and flexible provisions of tariff system according to law Only developing countries are entitled to the above buffer opportunities In the Sino US agreement, there is no such exception clause as forbidding China to use WTO, which objectively recognizes China's status as a developing country, which means China can use such exception clause as infant industrial protection Temporary measures can be taken to compensate for the damage caused by the strong external impact on the domestic market Therefore, the Chinese government has the right to formulate relevant policies for the situation of the domestic corn market (similar to the soybean genetically modified regulations issued in June), which is conducive to the development of the domestic corn industry 2nu 3 The current economic situation in the United States is conducive to China's corn industry 2nu corn production in the United States has always been high cost and low price export The key is that the U.S government has always adopted high production subsidies and export subsidies But last week's us statistics showed that US consumption fell below the lowest level in recent years The US economy is now in a state of weakness, and heavy government subsidies will make the US fiscal burden Moreover, the WTO agricultural agreement requires the chief mate to reduce agricultural subsidies In the face of the current pressure, if the United States reduces government subsidies, it will greatly strengthen the competitiveness of China's corn 2nu 4 China's non genetically modified corn has market competitiveness 2nu China's corn is a non genetically modified variety, and its price is lower than that of the U.S genetically modified corn But in the early stage, Japan purchased a batch of non genetically modified corn, and its price is 40% - 50% higher than that of genetically modified corn On the contrary, the price advantage of corn in China is particularly obvious And developed countries in Europe prefer non GM corn, and GM corn is still unstable, so China's corn still has a certain market competitiveness 2nu 5 The stable development environment in China 2nu in the general global economic downturn environment, China's economy is unique and has a stable development environment, which has laid a solid foundation for the smooth implementation of the corn industry system reform after China's accession to the WTO Although the current international situation is beneficial to China's corn industry, the impact of China's accession to the WTO cannot be ignored According to the relevant agreement, by January 1, 2004, China's agricultural tariff will be reduced from the current 22% to 17.5% The most affected agricultural products are wheat, cotton and other bulk agricultural products led by corn Once a large number of foreign agricultural products enter China, China's planting industry will be greatly impacted, and lead to the increase of rural surplus labor Therefore, China's corn industry should take advantage of the current favorable situation at home and abroad, promote the reform of domestic corn management system and circulation system, adjust the production structure, enhance the market competitiveness of domestic corn, and gradually form a new circulation subject, which is the main content of the development of domestic corn The current situation is characterized by both opportunities and challenges 2Nu