Domestic Wait-And-See: Inspiration From Us Cotton Subsidy Policy (2)

(three) trade subsidies

The subsidy, namely export subsidy Step 2, including the export subsidy of upland cotton and the export subsidy of long staple cotton, are set up to ensure the competitiveness of American cotton in the international market and encourage the cotton textile enterprises in the United States to use more cotton. The subsidy is mainly for textile enterprises and cotton exporters.

The cancellation of export subsidies is the US cotton, the specific conditions are as follows: the lowest price of the US continental cotton and the Nordic CIF price exceeds the weekly average A value of the Nordic CIF, and the world adjusted price is no more than 134% of the benchmark cotton price.

The calculation method is as follows: the lowest average price of the US land cotton and Nordic CIF in the 4th week is deducted from the average price of the Nordic CIF A index.

The agricultural bill was adjusted in 2002, that is, the original marketing certificates is still in effect, different from the 1996 bill. In addition to being issued to exporters, the certificate can also be issued to domestic factories, and it can also enjoy preferential subsidies.

The US high cotton subsidy has greatly reduced the cost of US cotton exports, and the United States has become the world's largest exporter of cotton.

From August 1999 to July 2003, 25 thousand cotton producers in the United States received a total subsidy of US $12 billion 470 million, while the US cotton output value was US $13 billion 940 million over the same period, and the subsidy rate (that is, the proportion of subsidies to the total output value) was 89.5%.

The United States subsidized 25 thousand cotton farmers every year for about 3 billion dollars, with an average subsidy of 12 thousand US dollars per household, equivalent to the output value of a Chinese cotton farmer from 7 to 10 years.

According to the US Department of agriculture, the average annual agricultural subsidy will reach 19 billion to 21 billion dollars per year in the 6 years from 2002 to 2007.

In accordance with the agricultural law of 1996, the statutory agricultural subsidy amounted to US $66 billion 600 million, and the new agricultural law increased by US $51 billion 900 million on this basis, amounting to US $118 billion 500 million, an increase of 40% to 50% over the 1996 agricultural law.

Three. Differences between cotton subsidies and China

In terms of loan support to cotton related owners, there are mainly differences between China and the United States: (1) in order to protect the interests of cotton farmers, China and the United States issue loans to cotton processing plants and cotton growers through the National Agricultural Development Bank, and buy cotton from cotton growers; the United States pays loans directly to cotton farmers through the Commodity Credit Corp of the Ministry of agriculture and purchases cotton from cotton growers.

(2) China has issued loans to cotton processing plants and cotton traders, and cotton prices for cotton farmers have changed. The US cotton loans to cotton farmers and cotton prices for cotton farmers are basically unchanged.

(3) subsidies to cotton farmers in China are intangible and changeable. The subsidies given to cotton farmers in the United States are tangible and relatively stable.

From the above comparison, we can see that

From the point of view of credit system, in the link of cotton warehousing, the United States directly issued loans to cotton farmers through the Commodity Credit Corp of the Ministry of agriculture. It is entirely financial capital, and the government's actions and interests are implemented in many ways.

China has issued loans to cotton processing plants and cotton growers through the agricultural development bank. The risks are entirely borne by banks and enterprises. The government is not responsible for it and has no interest in cotton growers.

In this way, the pparency of bank lending is not enough, policy is not strong, and business is too large.

Four, the US cotton export mode and Its Enlightenment to China

The three ways that cotton exporters sell cotton to foreign markets are foreign market agents, foreign cotton traders / importers, and direct sales to factories.

Among these three methods, selling through agents is the most common one.

The cotton agent is a bridge connecting exporters and manufacturers, representing exporters to negotiate matters, supervising the issuance of letters of credit and notifying manufacturers of on time delivery.

Direct sales are rare, but for various reasons, direct sales are also frequent.

Quotations or quotations can be applied to cotton quotes in the world cotton market.

Although the United States has abolished export subsidies, its domestic production subsidies and sales subsidies still make us cotton occupy a big advantage in cost.

US cotton futures trading as the center of the export pricing model makes the intercontinental Futures Exchange (ICE) in New York become the most important pricing center of the world's cotton.

In the United States, almost all plants are grown.

Cotton growers and traders in China only have spot trading and futures trading for a long time, and their operation methods and trading methods are single and backward, so it is difficult to integrate into the mainstream market of world cotton trade.

Due to the failure to establish a modern, high-level and multi field cotton management system, there is a problem of unreasonable supply and demand and unbalanced structure in China's cotton production and circulation, and it is difficult for cotton to achieve orderly circulation.

Although China has become the largest cotton producer, consumer and importer in the world, it lacks the right to speak and influence in deciding the international cotton price.

Therefore, we can see from the US subsidy and export pricing mode that we should continue to maintain the macro adjustment policy of our country to cotton, such as reasonable minimum purchase price policy, proper storage and storage policy, reasonable allocation of import quotas, etc. in addition, we need more publicity to promote the role of domestic futures market, increase the pricing power and price discovery effect of Zhengzhou commodity exchange in international trade, and guide cotton growers and traders to participate in market hedging more effectively, effectively avoiding the risk caused by the fluctuation of international cotton prices.