AGRIBUSINESS: Despite GMO Issues, Trade With China Healthy
Even though China is blocking corn exports because of GMO’s, they haven’t exactly been scaling back U.S. imports.
According to USDA’s Economic Research Service, for the past decade American exports to China increased by 1200%, $2.1 billion in 2002 to $26 billion in 2012.
China began direct subsidies in between 2003 and 2004, which raised costs and prices of Chinese commodities above international levels. This is due to WTO agreements: low tariffs and eliminated barriers have turned China into a net importer of commodities that take part of its domestic support programs, such as grains, oilseeds and cotton.