Synthesis

This component of the CATSEI project aims to develop a consistent view of the combined effects of the various trends, challenges and solutions. In this part, we will take seriously the task of assessing the various policy options at the disposal of officials in China and the EU, so as to identify the prospects for agricultural trade between China and the EU. For example, what are the expected effects of changes of land tenure reform (land titling or even privatization) on supply, demand and trade of agricultural commodities as well as their effect on social welfare and the environment?

Similar analysis needs to be done on a number of other important policy options:

(a) water pricing and allocation policy schemes;

(b) new efforts to reform agricultural research and extension;

(c) initiatives to promote farmer associations;

(d) different trade policy negotiating packages.

All of these will have potential positive and negative impacts on efficiency, equity and the environment; our goal is to lay out the consequences of the different policy options so policy makers can make their decisions on a more informed basis.

The rising demand for meat may further illustrate the connections between these components. This rise could offer Chinese farmers a growing source of revenue, and thus help reducing the mounting rural-urban income gap, currently a top priority of the Chinese government. At the same time, it will lead to additional environmental stress through increased discharge of manure and use of pesticides, confirming the tension between social environmental and objectives. Technically, this could be addressed by relocating these activities away from urban peripheries where pressure is highest to inland regions where feed grains are grown. If subsidies could be invoked to overcome the competitive loss from relocation, the income gaps between regions are likely to fall in the process. Yet, this would conflict with current WTO-commitments. Similarly, taxes on pollution would favor imports from abroad and the imports restrictions needed to counter this effect are not compatible with WTO-regulations.

Responsible for this page: Elisabeth Kawczynski
Last updated: 16 Oct 2009