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Abstract

China was admitted into the WTO in December 2001 and this raised the hopes of the US that China will open up to agricultural trade with the US. However, this potential has not been realized. The goal of this study is to determine the impacts of trade impediments and barriers of the market access of US oilseeds and grains in China. A market access variable that was obtained by dividing the total value of U.S soybean and corn exports to China by U.S agricultural G.D.P was regressed on China’s per capita income, exchange rate of the yuan to the dollar, arable land to labor ratio in the U.S and a dummy variable representing China’s WTO accession. The result found per capita income to have a positive impact on market access of U.S oilseeds and grains in China. Exchange rate of the yuan to the dollar was found to be significant and has a negative impact on market access. However, China’s WTO accession and the arable land to labor ratio in the U.S did not have any significance on the market access of U.S oilseeds and grains.

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