Title：Reforming China’s Agricultural Support Policies under the WTO Agreement on Agriculture Framework — Reducing“Amber Box” Measures While Increasing “Green Box” Ones

Authors：Tianhui Zhao, Faqin Lin, Mengxun Liu

Abstract: The development of agriculture in China has entered a new stage faced with external risks of international trade and internal requirements for high-quality development. With the deepened integration of international agricultural markets, China’s agricultural support policies need to deal with great pressure and challenges under the restrictions of international trade rules. This paper reviews the pressure upon China’s agricultural support policies and its reform of reducing “Amber Box” measures while increasing “Green Box” ones. Based on relevant theories, this paper analyzes the expected overall effects of the reform. The policy package of promoting the full-cost insurance and the planting income insurance through subsidies and progressively lowering the administratively determined support price will improve the fiscal expenditure efficiency, the protection of production income and the expected economic benefits. It helps to maintain the stability of international trade and strengthen the global competitiveness of agricultural products. Based on the common consideration of complying with international trade rules and ensuring the high-quality development of agriculture in China, this paper argues that China’s agricultural support policies should continue to promote the progressive reform of reducing “Amber Box” measures while increasing “Green Box” ones under the principle of “market-driven pricing mechanism with decoupled subsidies”. Future policies should shift towards greater internationalization, marketization, and targeting accuracy, enhancing the competitiveness of agricultural products, optimizing domestic support policies and actively participating in the formulation and improvement of international trade rules.

Keywords: Reform of Agricultural Support Policies, Reducing “Amber Box” Measures while Increasing“Green Box” Ones, International Trade Rules