| In 2001 a new round of multilateral trade negotiations - the Doha Round launched. This round of comprehensive agricultural negotiations though ultimately failed to achieve any significant results, have produced profound influences on participating countries'national policies and reforms and boosted the global agricultural trade liberalization. As one of the world's leading agricultural producers, China possesses the world's largest agriculture-based population and a huge amount of grain production. Therefore, agriculture industry has always been seen as an important element that guarantees the national stability as well as the main component of China's foreign trade. European Union is as one of the most important agricultural trade partners of China, whose trade policy and reform orientation has been exerting long-lasting influence on China's agricultural trade. To get used to the trade liberalization and to deepen the reform of bilateral agricultural trade policies, it is both theoretically and practically meaningful to explore in a more efficient way for China - EU future cooperation in agricultural trade. China has experienced a rapid growth of agricultural trade with EU since its entering into WTO in 2001. For its largest exports to EU are: aquatic products, fruits, vegetables and labor-intensive products like non-food live stocks, etc.. Products such as dairy, cereals, beverages, etc. on the other hand, are heavily relied on imports from EU.This paper starts with the analysis on trade policy development of China and EU, which serves to reveal the advance of agricultural trade between the two parties. Having adopted the gravity model to interpret how the bilateral trade has been affected by both parties'trade adjustment, this paper involves the time series model in to forecast the development trend of bilateral trade. Subsequent to the theoretical practices, this paper engages in exploring the desirable approach in advancing China's agricultural development and giving full play to the exporting advantage of the agricultural products by using EU's beneficiary experience for reference. The conclusion is: after entering into WTO, China's agricultural trade policy reforms like the expansion of market access for agricultural products, improvement of market openness to agriculture and other initiatives have enhanced the competitiveness of Chinese agricultural products as a favorable role in promoting china's agricultural trade with EU. Generally speaking, EU's Common Agricultural Policy reform has undoubtedly reduced trade distortions while promotes agricultural trade between China and EU. On the other hand, we are supposed to be alert at the fact that the EU's increasingly stringent food safety standards as well as green barriers of technology barricade China's advanced exports.In light of this, the paper makes an attempt to give suggestion on the future development of China - EU agricultural trade: First, China's existing trade system needs integrating and optimizing. This practice on support system of agriculture covers offering price support for crucial agricultural exports, investing more in direct income subsidies to farmers and moderately adjusting the general structure of services support. In addition, this practice is true of trade policy while the sustainable development of agriculture product trade calls for concern. Second, trade policies should be made on the foundation of preserving china's exporting advantages to EU, which requires both quality management of exports and health security be enhanced, the exports-promoting policies be implemented and information and technology support should be strengthened as well. Third, the structure of agricultural exports is in need of further adjustment while deep-processing agricultural exports to EU can be promoted as the advantage of traditional labor-intensive export gets enhanced on the basis of the technology-intensive export expanded. |
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