Study On The Impact And Countermeasures Of Hainan Agriculture After The Tariff Free Between China And Asean Trade Area

China-ASEAN Free Trade Area officially completed in2010, which is a major initiative for China’s integration into the international market, it’s conducive to China to attract foreign capitals and outward investment, and it’s conducive to the industrial division of labor and expands the trade of complementary products. Meanwhile, the Free Trade Area will bring some challenges to China’s tropical provinces, as a large tropical province of Hainan, similar in location and type of product with ASEAN, agricultural trade is an important power for economic development. With the gradually build and improvement of CAFTA, the competition between the two parties will become more apparent. Particularly for the huge impact of Hainan’s tropical agricultural markets, therefore it needs to plan ahead and takes a positive response to the strategy.This paper systematic analyzed of the conditions of agricultural production and trade which based on latest statistics and reality situation, and pointed out the countermeasures for tariff free. This paper is divided into seven parts.The first part introduces the research background, purpose and significance, technology roadmap and the research situation of domestic and abroad. The second part introduces some conception about tariff free and theoretical basis. The third part makes a comparison in agricultural environment, employees, agricultural products major markets between Hainan and ASEAN. The fourth part is the empirical study. Many tropical products have advantages of ASEAN through the comparison by RCA and RTA, such as natural rubber, palm oil, bananas and other tropical agricultural products. The fifth part analyzed the situation of agricultural trade. China is the major agricultural export market of ASEAN, and ASEAN in the condition of surplus long time, also is Hainan dependent on agricultural products export. The sixth part analyzed the impact of tariff free on Hainan agriculture. The seventh part points out some countermeasures based on the tariff challenges,Research shows that ASEAN countries have advantages in agricultural employees, farmland, total productions and cost. Hainan has advantages in unit cost of product and intensification. The agricultural products are complementary between China and ASEAN, especially Indonesia, Malaysia and Thailand. There are some potential problems in CAFTA, such as non-tariff barriers, misunderstanding of the trade policy, weak ability of Hainan in risk-resisting, and the negative impact of southern China Sea dispute, the positive impact is to strengthen the exchange and cooperation, stimulate the adjustment in Hainan agriculture, and expand the export markets; the negative impact is exacerbates the competition of tropical agricultural products, some markets of agricultural products are facing threat, some farmers will be affected, adjust the strategies of agricultural development, government should play the role of regulation, promote the construction of information technology and marketing.