Reform Of Eu Agriculture Subsidy Policy And Reference To China

Currently, the agricultural issues draw lots of attention internationally, the increasing world grain prices, deduction of agricultural output due to natural disasters, agricultural trade protection and subsidy, questioning on food quality and safety and so on, all these issues make the governments and scholars begin to review and reanalyze agricultural policies. Besides, Doha rounds have few improvements since it started at Qatar capital in November 2001. It was planned to be finished before January 1st 2005, but the turned to be lasting till this year. The most difficult and controversial issues come to agriculture which is a very weak as well as very important fundamental industry to a country. For protecting and supporting this industry, the most common and flexible tool should be agricultural subsidy practice.When we do research on agricultural subsidy, EU should be the typical target. EU's agricultural subsidy policy established quite earlier when EU established its first agreement "Rome agreement" which stated whey would launch the Common Agricultural Policy including agricultural subsidy policy. But with the new situation in the world, enlarging of EU members and domestic conflicts the EU agricultural policy began to show its defects which led to overproduction, natural environment aggravation and overburden of government finance, making EU constantly improve it's agricultural policy ensuring it could support the agriculture healthy development and meet with the world new situation. Therefore, it will be valuable to analyze EU's agricultural subsidy policy to China and other countries.China also has a big agriculture, with agricultural labor taking more than half of total Chinese population. In this way, to ensure peasants'stable income and improve the production structure not only relate to agriculture's stabilization and national economic development, but to social stabilization. Agricultural subsidy is one of the most important measures to support agriculture, but it was limited due to Chinese development strategy of long-term planned economy and industry priority. However the agricultural subsidy policy established several decades earlier in western countries, especially in EU, its improvement of agricultural subsidy policy is worthy to be studied and analyzed for our own benefits.This paper is based on agricultural subsidy theory, through investigating the background, content and the results of EU's agricultural subsidy reform and then gives the suggestions on improvement of Chinese agricultural subsidy policy. In details, Chapter 2 is about the theory, focusing on the definition, effectiveness and common measures of agricultural subsidy, most countries agree with the three categories defined by WTO which are Blue Box, Yellow Box and Green Box, having different impact to international trade. Specifically speaking, Green Box and Blue Box have minimum effect on international trade and are free from restriction; however, Yellow Box distorts trade and are restricted there force.Chapter 5 describes the establishment of CAP and the policy of agricultural subsidy improvement, background and results. Now EU has gone through several enlargements of membership and the world situation has been changing which make EU constantly improve and develop its agricultural subsidy policy to get the "Yellow Box" practices become falling into "Green Box", especially the great efforts EU made to improve the natural environment and food quality which we should learn from. In Chapter 4 and 5, we describe the domestic agricultural subsidy policies and provide suggestions on reform. China has a big agricultural industry with lots of peasants living below the average standard. But from the agricultural policies China made these years we can tell our country is paying more and more attention on development of peasants, rural area and agriculture. We also put many subsidy policies into practice to ensure the income of the peasants. However there is still a lot of space for us to improve our agricultural subsidy policy and practice comparing with EU's experience. We can take EU as an example and making our subsidy strategy sustainable developed.