USDA economists explore scenarios that would benefit U.S. producers, Chinese consumers.
China is one of the top importers of agricultural products in the world, but it has non-tariff measures that prevent its imports from growing even larger. Economic theory suggests that a country would import products when foreign prices are lower than domestic prices, decreasing domestic prices and narrowing the “wedge” between domestic and international prices. In a newly released USDA Economic Research Service (ERS) report, eight agency economists examine China’s import market potential using a price wedge approach—the difference between domestic and imported prices—for commodities that are imported by China.
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