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China would cut farm tariffs under WTO deal - study

Published 07/28/2009, 08:08 AM
Updated 07/28/2009, 08:16 AM

* Doha deal would cut Chinese agricultural tariffs

* Cuts would be in actual rates, not just the ceiling

* Average farm tariff to fall one sixth to 13 pct

By Jonathan Lynn

GENEVA, July 28 (Reuters) - China would cut farm tariffs under a new global trade deal, further opening up one of the least protected agriculture markets in developing countries, according to a new study by a Chinese expert.

The study by Tian Zhihong, professor of international trade at China Agriculture University, concludes that a deal in the World Trade Organisation's Doha round would see the ceiling on China's farm tariffs fall by about one sixth.

It notes that China's tariffs -- which were cut as a result of tough negotiations when China joined the WTO in 2001 -- are already only one quarter of the world average.

And unlike in many other developing countries, there is little gap between the maximum tariff ceiling and the duty China actually applies, so that a cut in the ceiling would produce a real reduction in the duties that are levied.

"China is one of the least protected markets for agricultural products in the developing world," Tian said in the study, produced for the Geneva-based International Centre for Trade and Sustainable Development (ICTSD), a non-governmental organisation that promotes research into trade and development.

The study, released earlier this month, is based on the latest negotiating texts issued last December, and appears as efforts are under way to revive the long-running Doha negotiations which began in 2001 and reach a deal next year.

China, with other big emerging countries, is under pressure from the United States in the Doha talks to open its markets more to American goods, particularly manufactured products. But a deal which opens up the food market of the world's biggest country could also be attractive to American businesses.

Under the December proposals, China's farm tariffs would fall by about one third, but special treatment for developing countries and recent members would see a smaller reduction, with the average maximum tariff falling to 13 from 15 percent.

For example, China would take advantage of measures allowing all countries to shield politically sensitive products from the full impact of tariff cuts, or developing countries to make smaller cuts on products that are important for food security, farmers' livelihoods and rural development.

Tian noted that China, where 900 million of the 1.3 billion population still live off the land, has been a net food importer since 2004.

In recent years government policy has shifted to supporting farmers, who are poorer than urban workers, rather than taxing agriculture, Tian said. But proposed cuts in farm subsidies could restrict current Chinese supports for wheat and cotton farmers, he said. But the Doha proposals are unlikely to affect other farm supports. (For the full report go to http://ictsd.net/i/agriculture/50467/ )

(Editing by Ron Askew)

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