Analysis Of The Issues On Agricultural Trade Between China And Asean

Agricultural trade is an important part of economic and trade cooperation between China and ASEAN. In addition to Singapore and Brunei, the other 8 countries of the ASEAN and China's agriculture play an important role in the national economy, at the same time, China and ASEAN have a geographical advantage, particularly Myanmar, Vietnam, Laos border directly with China, which has played a important role for the development of agricultural trade between China and ASEAN. During the past 20 years, it has a rapid economic growth. For the purpose of the swifter and better development, in 2002, China and ASEAN signed the agreement named Agreement on Trade in Goods of the Framework Agreement on Comprehensive Economic Co-operation between the People's Republic of China and the Association of Southeast Asian Nations and both put agriculture as the main areas of cooperation. Agricultural trade between China and ASEAN has made a major breakthrough, the majority of tariffs on agricultural products dropped significantly, even reduced to 0, the trade quantity has greatly improved, however, the outbreak of the global financial crisis at the end of 2008 quickly spread to the real economy, bilateral agricultural trade between China and ASEAN have been seriously affected. In January 1 of 2010, "China-ASEAN Free Trade Area," was formally established, it brings new opportunities and challenges for China-ASEAN, and also offers more room for China and ASEAN's agricultural trade.This paper on agricultural trade between China and ASEAN first use a qualitative analysis to descriptive the general agricultural products'trade situation, although China and ASEAN are classified as the developing countries, but the economic development are at different levels. National economies in Southeast Asia and China are highly complementary. Agricultural trade has a rapid growth and maintains a rapid growth trend between China and ASEAN, indicating that China has become an important agricultural trade partner of ASEAN. Especially since 2001, the two sides signed an agreement on establishing a free trade area, the agricultural products'trade dependence became more and more close. But China has been in a deficit state on the agricultural products'trade between China and ASEAN for a long time. Then, agricultural products are classified in accordance with the sorts and factor endowments, and found that agricultural trade of China are at a disadvantage all the time, although in some particular agricultural products' trade, China has a comparative advantage, it can be predicted that China's agricultural trade deficit will persist for a long time. Then use empirical method to analyze agricultural products'competitiveness of China and ASEAN, using the comparative advantage index, trade intensity index and trade complementary index to research agricultural products'export structure of Chinese agricultural products export to ASEAN countries, which is China and ASEAN countries'competitiveness in the major agricultural products. From the results of index, it can be seen that except Singapore and Brunei, China and the other ASEAN countries have the advantage in agricultural products, but the complementarities of agricultural products between China and most ASEAN countries is very small, so China and ASEAN countries in lower trade intensity than the average level of the world. But trade intensity of China and the whole ASEAN attains to the global average, indicating that there is a great potential for agricultural trade between China and ASEAN countries.For this article, the possible innovations are the following points. Firstly, from the aspect of the whole China to look at the agricultural trade between China and ASEAN, breaking out the previous research on agricultural products between ASEAN and one province of China, which is adjacent to ASEAN. And the use of HS codes and SITC code to produce category to describe the classification, from both the overall trend of agricultural development and all kinds of agricultural development's changes, pointing out that the agricultural trade advantages and disadvantage between China and ASEAN. Finally, making use of three indices to compare respectively from China and all of the ASEAN countries, it makes argumentation more powerful, and according to China's agricultural trade arrangements with ASEAN, judging the development trend of trade in agricultural products between China and ASEAN, and put forward suggestions. Inadequacies of this paper is collecting and sharing information is not very full, lacking of deep analysis of some problems, there is no in-depth study, just utilizing the other's research findings to exploit ASEAN-China trade competitiveness of agricultural products. Meanwhile, on the analysis of the competitiveness of agricultural products, only analyze the general agricultural products, neglect specific agricultural categories' trade. Finally, in the process of analyzing, ASEAN as a whole to analyze, however, there is economic disparity within ASEAN, the 6 old members of ASEAN, Malaysia, Indonesia, Thailand are in the higher degree of agricultural development, and have large import and export with China, and the 4 new members, they are less developing agricultural countries, with the establishment of China and the ASEAN Free Trade Area, their trade with China is increasing, it should be analyzed respectively so that the arguments will be more powerful.