Research On The Aquatic Products Trade Of FTA Among China,Japan And South Korea, Based On The Trade Gravity Model

With the rapid development of world economic integration, regional economy also develops rapidly. Establishment of multilateral free trade area has already exceeded the scope of the bilateral trade. Many countries establish free trade agreements, establish free trade areas and give each other reciprocity and mutual benefit to strengthen the relationship and cooperation between them. Strengthening economic relations can also promote the strengthening of political and diplomatic relations. So that all members of the free trade area can not only gain economic win-win benefit, but also enhance the world influence. In this context, the leaders of the three countries had a trilateral talk to strengthen economic cooperation, and agreed to conclude the China-Japan-Korea Free Trade Area problem.Aquatic products trade among Japan, South Korea and China is one of the important contents of China-Japan-South Korea Free Trade Area negotiations. Both Japan and South Korea are countries with large aquatic product consumption. Their domestic water production capacity is insufficient and large imports of aquatic products are needed each year. China is a big country of aquatic product production, and the output of aquatic products is rich. China has been the biggest exporter to Japan and South Korea for many years, while Japan is China’s first export markets of aquatic products. From the year2002to2011, the products that China exported to Japan amounted to more than$29,000million.Trade of aquatic products will become an important issue in the free trade area negotiations. China aquatic products feature with high quality and low price, apparently in a dominant position in Japan’s and South Korea’s markets. In order to protect native aquatic product market, Japan and South Korea take all kinds of measures to hinder the import of Chinese aquatic product, such as tariff and non-tariff measures. Although the nominal tariff rate made by Japan and South Korea is not high, due to the two countries temporary high tariff and green trade barriers emerging in an endless stream, a serious obstacle to China’s export of aquatic products is set.The establishment of a free trade area of aquatic products will reduce tariffs, and realize the liberalization of the aquatic product finally. This paper mainly takes China as the research object, using the Industrial Trade Gravity Model Analysis on the influencing factors of Chinese aquatic products trade flow. In the short time, trade liberalization will cause a certain impact on the aquatic products in Japan’s and South Korea’s market, but from a long-term point of view, the tariff reduction will promote the growth of trade volume of aquatic products and overall the welfare of the three countries.