Date of Award

2011

Document Type

Thesis

Degree Name

Master of Science (MS)

Department

Agricultural Economics

First Advisor

Yeboah, Osei-Agyeman Dr.

Abstract

China was admitted into the WTO in December 2001 and this raised the hopes of the U.S that China will open up to agricultural trade with the U.S. This is due to the fact that China is the most populated country in the world with a rising mile income and therefore has the potential for increasing its food consumption. However, this potential has not been realized. China has used various strategies such as devaluing the Yuan against the dollar to promote exports and impede imports. The U.S currently has a trade deficit of 252 billion dollars with China. China is currently the largest importer of U.S oilseeds such as soybean, but the import of U.S grains such as corn has been minimal. The goal of the present study is to determine the impacts of trade impediments and barriers of the Chinese market access of U.S oilseeds and grains. In order to achieve this goal the study examined the barriers to market access of U.S oilseeds and grains in China. It also econometrically determined the impacts of these barriers on the U.S. The barriers that were identified were sanitary and phytosanitary barriers, subsidies on the Chinese agricultural sector, trading rights, exchange rates and tariff rate quotas. To econometrically determine the impacts of these barriers on the U.S, a market access variable was obtained by dividing the total value of U.S soybean and corn exports to China by U.S agricultural GDP. This was regressed on China‟s per capita income, exchange rate of the Yuan to the dollar, arable land to labor ratio in the U.S and a dummy xiii variable representing China‟s WTO accession. The per capita income of China was found to have a positive impact on market access of U.S oilseeds and grains. Therefore, an increase in the per capita income in China will lead to an increase in the market access of U.S oilseeds and grains in China. The exchange rate of the Yuan to the dollar was also found to be significant in determining market access and as expected had a negative impact on market access. Therefore, if the Chinese Yuan depreciates against the U.S dollar, there will be a decrease in market access of U.S oilseeds and grains in China since U.S oilseeds and grains will be more expensive in China as a result of this. However, China‟s WTO accession and the arable land to labor ratio in the US did not have any significance on the market access of U.S oilseeds and grains into China.

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