A Study On Pork Trade Barriers Of The U.S. And China

China is the world's largest producer and consumer of pork.The pork production occupies an important position in the world.As the scarce arable land resources and high feed grains price,the pig farming has obvious disadvantages,resulting in substantial deficit pork trade of China.America is the animal husbandry production superpower.The pork production and consumption 6f Amercia ranked third in the world,followed after China and the European Union.The pork export of U.S.ranked second in the world,after the EU.In September of 2013,Shuanghui International invested $7.1 billion dollars to merge the world's largest pork processing enterprises Smithfield.The successful acquisition has turned it into non-listed subsidiaries.The trans-national merger and acquisition of Shuanghui will increase the internal trade volume of China's pork.This will result in expanding pork imports from America.China is the fourth largest pork export market for U.S.,while the United States is China's largest source of imports of pork.China and U.S.pork trade ties,but complementarity is not strong.Compared with America,although Chinese pork trade policy will not limited into the high quality pork imports,the policy is not perfect enough.Also,it involved less in the areas of environmental pollution and farm support.This paper selects China,Japan and Russia as the main import country,and selects USA,EU,Canada and Brazil as the main export country.And based on the GSIM model,it estimates the demand elasticity,supply elasticity and the elasticity of substitution of the main pork trade countries,then calculate the producer welfare,consumer welfare and tax revenue.The study shows that,reducing the trade barriers can increase the total social welfares.Due to more loss of producer surplus,the United States and Japan result in 36 million dollars and 94 million dollars of net welfare loss.The consumer surplus and tariff revenue of Russia have almost no change.But they are not able to make up for the loss of producer surplus,and resulting that the net welfare losses of Russia amounted to 225 million dollars.As for the EU,the loss of tariff revenue is up to 691 millions dollars.Although the pork import tariff of EU is greatly reduced,the increase in consumer surplus makes up for the loss of EU,so that the net benefit is up to 152 million dollars.Due to the increase of consumer surplus and producer surplus,the surplus of China is enough to make up for the tariff revenue loss,so the net welfares are 4 million dollars.For Brazil and Canada,the consumer surplus and producer surplus is higher than the tariff revenue losses,so the respective net welfaress are 23 million and 32 million dollars.First,China should perfect the domestic support policy to ensure the supply of pork.Second,China should reduce the restrictions of market access and appropriately import high quality pork.Third,China should improve the import and export management level to reduce the cost of pork trade.Fourth,China should increase foreign direct investment to promote the international trade of pork.Finally,China should play the role of industry organizations and promote the healthy development of the pig industry.