Korea Agricultural Trade Policy And The Countermeasures For China-Korea FTA

Since China and Korea established diplomatic relations, commercial trades, as well as agricultural product trade have sustained uptrend development rapidly. Nowadays, China has been the forth agricultural product import country of Korea, and Korea has been the biggest agricultural product export country of China. Geographical adjacency and similarity in culture provide potentialities for further development of agricultural product trade. As regional integration becomes general trend of international economic trade, China and Korea, the two important economic systems in south-east Asia, have signed free-trade agreement with some other countries; and the FTA negotiation between the two countries has been put on schedule. In this condition, quantitative and qualitative analysis on the economic effect of FTA between China and Korea before the negotiation is necessary.This paper can generally be divided into four parts: Firstly, in order to find the inner reason of comparative superiority in agricultural product of China and Korea, domestic agricultural industries of both countries are described and compared. The description is emphasized on some sensitive main products. Furthermore, the structure of agricultural product trade of China and Korea is analyzed, and then we can know the similarity and difference in trade structure, finding out the main opponents in the trade market. Thirdly, based on the comprehension of comparative superiority and trade structure, domestic agricultural policies and agricultural product trade polices are summarized. The last part of this paper is the quantitative analysis; we apply the gravity model on the research of economic effect of the agricultural trade of China and Korea in the FTA structure, mainly on the condition that when the tax is reduced, how it will influence the agricultural product export to Korea from China? The result indicates that the establishment of FTA will largely enhance the export of agricultural product from China to Korea, but the competition with America and Australia will still be fierce.In view of the above-mentioned analysis, this paper makes the following proposals: (1) increase the quality of exportable agricultural product; (2) Enhance the scale and specialized production of agricultural products; (3) Establish the information service system of agricultural product export market; (4) Construct coordinated institution solving trade disputes.