The influence of China's entry into WTO on corn market

Introduction: 2001 is the first year of China's accession to the WTO After China's accession to the WTO, it has a great impact on all aspects of China's economy In terms of agriculture, it is necessary to expand the opening degree of domestic agricultural products market, reduce tariff rates and gradually cancel export quotas, which will inevitably have a great impact on China's corn production and circulation, mainly as follows: 1 The price of corn has been impacted, so it is difficult to maintain high-level operation After entering WTO, China's import tariff will be gradually reduced, while foreign corn exports will import a large amount of corn to China with low tax quota Every year, the supply of corn in China is more than the consumption of nearly 10 million tons The influx of foreign corn expands the proportion between supply and demand, and the supply of domestic corn market is further increased The continuous increase of supply will inevitably lead to the continuous decline of price 2 The planting structure is constantly adjusted The declining price will affect the enthusiasm of farmers to grow corn The decline of enthusiasm will reduce the planting area of corn, and turn to planting agricultural products with high economic benefits 3 Farmers' income is affected As the main corn producing area, the main income comes from planting corn After entering WTO, the decline of corn price will have a great impact on the income of the farmers in the corn producing area, which will make the slow growth of the income of the farmers in our country worse How to improve the economic development and the living standard of the farmers has become one of the key issues after entering WTO 4 Monopoly acquisition will be impacted China's grain circulation has been affected by the planned economy for a long time, with a high degree of concentration, a late start of the grain market, a low degree of development, imperfect laws and regulations, and a unified and open domestic grain market has not yet formed After China's accession to the WTO, due to the expansion of opening up and the impact of low-cost corn abroad, the current state-owned grain storage enterprises in China will face serious challenges in monopolizing corn acquisition, which can neither be covered nor subsidized by the state At the same time, due to the entry of foreign quota corn, the circulation pattern of "North Grain and South transportation" in China will also change to some extent Some big corn consuming provinces (cities) in the south coast can take advantage of the advantages of offshore and middle coast, import the corn with low foreign price, and reduce the dependence on the corn production areas in the north of China; the corn production areas in the north, mainly in the northeast, can be exported to Japan nearby In South Korea, Russia and other countries, the current distribution pattern of "grain from the north to the South" will be replaced by the international circulation of corn "from the south to the north", and the flow direction and transportation will be more reasonable However, in this change, the most impacted corn production areas in Northeast China are facing strong competition from the United States and other corn producing countries in both domestic and foreign markets, and the market share will be reduced to a certain extent But in the long run, it also provides conditions and opportunities for northeast corn to participate in international market competition, develop export-oriented economy and national reserve corn to pass international market throughput However, the corn production areas in North China and Northwest China are less impacted, because the corn in this area is basically sold to the neighboring southern provinces, with a small amount of commodities and an advantage in transportation 5 Promote corn consumption and deep processing transformation After China's accession to the WTO, the consumption of corn in domestic animal husbandry and processing industry will increase stimulated by the decrease of corn price However, according to the relevant requirements of the agricultural agreement, the import tariff of meat products will also be reduced Beef will be reduced from 45% at present to 12% in 2004, pork from 20% at present to 12% in 2004, poultry from 20% at present to 10% in 2004 This means that China's animal husbandry production in the domestic market is faced with both favorable conditions for the reduction of raw material prices and the adverse situation that the reduction of tariffs leads to the enhancement of the competitiveness of foreign meat products 6 The survival pressure of state-owned grain enterprises has increased China's state-owned grain enterprises have not really become the market subject of independent management and self financing under the influence of the grain planned economy system and the protection of relevant national grain policies for many years After China's accession to WTO, it is difficult to compete with large foreign companies in the field of grain circulation in China Facing a serious survival crisis, it is imperative to accelerate the pace of reform and truly enter the market To sum up, after China's accession to the WTO, China's grain industry will have to face eight challenges: globalization of grain economy, easy liberalization of grain and oil products, standardization of market transactions, collectivization of grain management, informatization of grain management, decentralization of grain storage and transportation (loading, transportation, storage and unloading), integration of grain and oil production and marketing, and intellectualization of operators In the face of these challenges, we should propose solutions Guided by the change of market demand, the case constantly adjusts the planting structure, reduces the corn planting area, improves the corn deep processing technology, reduces the cost and takes the industrialized development path With China's accession to the WTO approaching, China's grain authorities and grain enterprises need to take stock of the situation and prepare for the future.