US Grains Council
July 15, 2003
On the eve of accession to the World Trade Organization (WTO), with the aid of border policies, China was the second largest corn exporter in the world. During the time prior to accession, China's corn prices were estimated to be more than 30 percent above world market prices (Huang, Rozelle and Chang, 2003). China's government explicitly admitted to providing subsidies for corn exports of up to $US35 per metric, which accounted for almost all of the protection that corn producers in China were receiving. During the late 1990s and through 2001, with such high subsidies the nation's exporters were able to sell around 5 million metric tons (mmts) annually into world markets (Gale, 2003). Most of the shipments, especially in the 2000 and 2001, were sent to Korea and Malaysia. With such large shipments, the exports of other nations in the world (especially those from the US that traditionally was Korea's main supplier of feed grains) were displaced.