Analysis Of The Present Situation And Competitive Ability Of Chinese And South Korean Agricultural Product Trade

China and South Korea are close neighbors, the exchange and the cooperation of economics and trade has a glorious history. Since China and South Korea officially established diplomatic relations in August, 1992, economical trade cooperation between both countries developed violently by astonishing speed. At present China has become the third big trade country, the second big exports country and the greatest investment market of South Korean, and South Korea also becomes the fourth big trade country and the fourth big capital investor of China. While both countries developing comprehensive economical trade cooperation, the agricultural product trade also has the corresponding development. But looked from the overall, agricultural product trade of China and South Korean is not as good as desired. In 2005 , the total amount of import-export trade of China to South Korea is 111.93 billion dollars, the trade deficit reaches as high as 41.7 billion dollars, but the amount of agricultural product trade of China to South Korea is only 3.053 billion dollars, only accounts for 2.73% of the total trade amount, and has a drop tendency year by year. Different with other industries, China is preserving a greater favorable balance to South Korea in agricultural product trade continuously; in 2005 the amount of favorable balance is 2.561 billion dollars. South Korea therefore started the trade protection method repeatedly; it has caused many trade frictions and caused very big losses for China's production operator, affected normal development of economical trade and the cooperation of China and South Korean in certain degree.South Korea is a traditional agricultural country, but only used more than 20 years to complete the industrialization advancement after Second World War rapidly and has become one of the most advanced industrialized countries in the world. At present, the technical progress factor of agriculture to the national economy is only 8.7%, the demand on the agricultural product in domestic market mainly relies on the import. Because China and South Korea are close in geographical position, the structure of agriculture and agricultural product is basic similar, the national's diet custom is quite same, the complementarity of agricultural product trade of the two countries is very big. Through earnestly summarizing the research results of China and South Korea agricultural product trade which experts of both countries made, this article apply the international trade theory such as comparison superiority theory, the competitive advantage theory and so on, in the foundation of inspecting the present situation and the market demand of agricultural product and the agricultural product trade in both countries. Through the theory with the real diagnosis examination, this article analyzes comparison superiority and the competitive advantage of agricultural product in both countries qualitatively and quantitatively, confirms the agricultural product exports of China to South Korea have a huge space.Because of domestic economical and non- economic influence and being one of the countries which does not develop the agricultural product market in the world, South Korea has adopted certain protective and excessively protective policy to the agriculture and implemented a series of severe standard of technologies, quarantine and the environmental protection to the agricultural product import, it has constructed the highest tariff barrier in the world. The agricultural product of our country also exist certain insufficiencies; it has hindered the health development of agricultural product trade in both countries seriously. But along with the gradual development of economical globalization, the full development of economic cooperation and the exchange of China and South Korea, the intrinsic demand on economic structure change of South Korea, the prospect of agricultural product trade of China and South Korea is extremely broad. This article suggested that, our country should strengthen the research of Chinese and South Korean agriculture product trade and gradually form the instruction system of region agricultural product trade; Create conditions to establish free trade area and realize the liberalization of agricultural product trade , establish the coordination mechanism of Northeast Asia grain reserves to meet to the emergency cases and guarantee the supplies of area market; Establish trade consultation mechanism and seek solutions to trade friction which possibly occurs together; Enlarge support to the agriculture, positively carry out the scale, the intensification and the standardization of agricultural production; Strengthen and optimize the management of agricultural product exportation and promote the health development of Chinese agricultural product trade to South Korea.