A Russian Minister of Agriculture thinks China is discriminating against Russia:
“I believe China is pursuing a discriminatory policy against Russia,” Gordeev said, quoted by the Itar-Tass agency. He explained that “currently China is importing some 6-7 million tons of grain annually, but Russia is not among its vendors”. At the same time, the minister added, “China demands access to the Russian market”.
Economics 101 anyone? Does buying more expensive and lower quality grain from other countries – what the Minister calls discrimination – make sense to you? It does not to me. Obviously, there is something to think about in terms of price, quality, and reliability of Russian grain products, rather than blaming it on the Chinese willingness to overspend on products from other countries and voluntarily reduce its own welfare. In the meantime, does the Minister imply that Russia would allow China “access to the Russian market” if China in-turn begins buying grain from Russia? There is also something to be said about evaluating costs and benefits of trade rather than sticking with the ineffective “tit for tat” strategy.
Published Date: February 22, 2006