Impacts Of Sino-Australia Free Trade Agreements On Inner Mongolia's Sheep Product Market

Majority countries are developing bilateral trade relationships with"zero tariff". In today's international trade, China is playing more and more important roles as an expending trade country. With New Zealand and Australia admitted China's market economy statues, Sino-Australia Free Trade Agreement (SAFTA) is on the agenda for the two countries.Because the two countries are complimentary in trade, free trade will increase the overall wellbeing of both countries. The establishing of SAFTA will promote the exchange of mechanism for various sectors, which plays an active role in improving the wellbeing of both peoples. However, since Australia is a very strong country in livestock production, Inner Mongolia Autonomous Region (IMAR), as a livestock-based region in China, may be impacted by the influx of high-quality livestock products from Australia.Generally speaking, establishing SAFTA may have both positive and negative impacts on livestock production in IMAR. In the short run, livestock production in IMAR may be negatively impacted. But in the long run, livestock sector in IMAR will be benefited from free trade in both growth and development. Australia can realize livestock product trade liberalization with China, but this process should be advanced gradually. In this thesis, lamb and wool are selected and studied. In the beginning, competitiveness of both countries with regard to lamb and wool was analyzed; then production, consumption, import and export for lamb and wool in IMAR are analyzed. Following the estimation for possible impacts on livestock production after establishing SAFTA, this thesis finally proposes the countermeasures.