The Structure Of Agricultural Trade Under CMS Model

This article introduces the Model of CMS and then uses this model to research the competitive power of agricultural products in China. The research shows that the structure of the agricultural products is not very good and the market structure id too single. All of these influence the improvement of the competitive power of China. The increase of agricultural products of competitive power is as important as the improvement of the structure in the increase of the export of the agricultural products. During the year of 1990-2004, because of the innovation of the foreign trade system, the financial crisis and China' s joining in WTO, the competitive power changes seriously. Besides, this article also uses RCA to research the competitive power of agricultural products. It shows that the food and live animals in China didn' t have any comparative advantage before 1995, but after 1995 the status was improving. Moreover, the animal/vegoil/fat/wax has great advantage. Especially in recent years there has appeared great increase. In terms of the above conclusion, this article submits several suggestions about the trade of agricultural products. 1, Make use of the compensatory character and creates win-win status. 2 Hasten the cooperation of trade and avoid the friction of the trade. In concrete: 1) We should make use of the rules of WTO to serve the friction of agricultural trade. 2) Accelerate the emergence of the rules of the international technology 3) Encourage the establishment of the association. 4) Adopt the market of the EU, America Korea and Japan 5) Increase the investment of the agriculture.