Research On The Problems In CAFTA Agricultural Trade

With the preliminary establishment of the Association of Southeast Asian Nations (ASEAN). China Free Trade Area in 2010, China -the world's largest consumption market with a population of nearly two billion-will bring new vitality to the Asian economy. An economic district will take into shape here in China with gross production amounting to 2.2 trillion US dollar and trade volume totaling 1.2 trillion US dollar. According to the "Framework Agreement on CAFTA Comprehensive Economic Cooperation", agriculture, human resource development, IT, the development of MeKong River Basin, and mutual investment have been identified as five key cooperation areas. Agriculture plays an important role in both China and ASEAN. On one hand, the agricultural mechanization and modernization in these countries are at relatively low level. Besides, each nation is at the same developmental phase and shares the similar consumption convention.This dissertation is based on the research of the comparative advantage theory and current situations of agricultural trade with a special focus on the Early Harvest Program. It states the problems in CAFTA agricultural trade, analyses the relevant advantages and disadvantages, and furthers with solution. The dissertation is consisted of the following five chapters:Chapter one introduces the background and significance of the research on China-ASEAN agricultural trade, defines such concepts as China-ASEAN Free Trade Area and its agriculture trade, and the Early Harvest program. The chapter also explores the current research in domestic and overseas research paper and outlines the framework and research methodology of the dissertation.Chapter two reviews several theories including comparative advantage theory, absolute cost theory, comparative cost theory, Leontief Paradox, and etc.Chapter three outlines the current situation of CAFTA agricultural trade through analyzing its general situation, the competitive advantages, and the mutual complementarity.Chapter four discusses the influences of the Early Harvest Program on the agricultural trade of both sides through a study of the Early Harvest Program framework.Chapter five suggests relevant solution to the CAFTA agricultural annual trade aiming to strengthen the economical cooperation in agricultural trade and promote mutual profits for the both sides.