After 15 years of negotiations, China became a full member of the World Trade Organization (WTO) in 2001. Since then, with eliminated or lowered tariffs, China’s bilateral trade has grown significantly. In 2002, the value of Chinese exports and imports for agricultural products reached $14.5 billion and $16.1 billion, respectively, and its total value of exports in agricultural products increased by $1.2 billion from the previous year.

The international sugar market is not a “free” market because of extensive use of production quotas, import controls, government support prices, and preferential trade agreements of rich countries. In the United States, the European Union, and Japan, protectionist policies have resulted in domestic prices up to three times greater than the world sugar price. In recent years, the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and regional agreements have mounted international pressure to liberalize sugar markets in the most offending countries but without much success. Nevertheless, the major protectionist countries are becoming aware that current sugar policies cannot last indefinitely.

The proposed federal energy bill, currently back in committee for further debate, has targeted a dramatic increase in the use of renewable fuel sources, and that has helped focus a vast amount of attention on ethanol over the past year. By 2012, five billion gallons of renewable fuels would make up part of the nation’s fuel supply. That is nearly double the current amount of ethanol in use.

Who would have thought that we would once again see $3 corn and $10 soybeans? Iowa farmers have not seen such price strength since 1996 for corn and 1974 for soybeans. At the same time, Iowa hog prices have strengthened in recent months; egg prices have more than doubled in the last two years; and cattle prices would be at record highs if U.S. export markets had not closed down as a result of the mad cow disease scare. Even so, cattle prices have hovered around $85.