U.S.-China Agricultural Trade: Constraints and Potential

Abstract

Abstract China's agricultural trade expanded rapidly following economic reforms and the open-door policy adopted in the late 1970s. The composition of agricultural trade with China follows its labor-abundant and land-scarce resource endowment with imports of bulk and processed intermediates and exports of consumer-ready and processed goods. Constraints on U.S.China agricultural trade include tariffs, state trading, food security policies, and other nontariff barriers. Growth potential is based on China's fundamental demand forces including the world's largest population, a high real-income growth rate, an emerging urban middle class, and further trade reforms to be implemented through accession to the World Trade Organization.

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