Research On The Effects Of Korea-US FTS On The Trade Of Agricultural Between China And Korea

The Korea government and the U.S. government officially signed FTA on30thJune2007,and the Korea-US FTA implemented officially on15th March2012. Theimplemention of Korea-US FTA affected the Korea and the US,and affectedneighboring country too.The volume and scale of trade between the Korea and theU.S.has been expanded,the welfare has been increased,the competitiveness has beenenhanced across the Korea-US FTA.The Korea-US FTA enhanced influence of the U.S.in Asia.However, the Korea-USFTA has a negative impact on the neighboring country of the Korea,such as China andthe ASEAN.There are some similarity and competition between farm produce of China andthe U.S..Because of the implemention of the Korea-US FTA,the farm produce ofChina entranced difficultly to the Korea.The Korea immediateded or graduallyrepelled tariff of the vast majority of the U.S.farm produce when the Korea-US FTAwere implemented.The price advantage of China,s farm produce were replaced by thefarm produce of the U.S.,so the volume of trade between the Korea and the China willbe reduced and trade environment will be deteriorated.We could conclud the farmproduce of China suffered a huge loss of trade diversion in the Korea market throughthe ESI,the RCA and relationship between supply and demand. China willaccelerate the promotion of the China-Korea FTA,especially negotiation ofagricultural agreement,for the sake of reduced and avoided loss of trade diversion.TheKorea-US FTA has a deep influence to the negotiation of the China-Korea FTA.Onthe one hand, The Korea-US FTA could promote the negotiation of the China-KoreaFTA;on the other hand,the Korea-US FTA would bring a great deal of negative effectsto the negotiation of the China-Korea FTA.It could be predicted that the negotiation ofthe China-Korea FTA will be difficult.But we believe the China-Korea FTA will beaccomplished because China and the Korea are needed each other. The volume of trade between China and the Korea continued growth fromChina and the Korea established diplomatic relations.As the most important part,thevolume of farm produnce trade continued growth too.The farm produce of China is replaced by the farm produce of the U.S.in the Koreamarket when the Korea-US FTA were implemented.The growth of the volume of farmprodunce in terms of China exports to the Korea slowed down and even went back.China needed to improve the export quality of farm produce by agriculturalstandardization,specialization and large-scale in order to promote the farm produceexport from China to the Korea and the China,s farm produce competition in theworld market;China needed to enhanced the support of agriculture by improve thelowest purchase offers and carried out income subsidies not the price subsidies;andestablished treatment agency of trade friction;increased agricultural cooperationbetween China and the Korea by differentiated production in China and theKorea;improved agricultural protectionism by changing themechanism,system,specific measures and policy; accelerated the negotiation ofagricultural agreement in the China-Korea FTA by the Korea-US FTA signed.There are huge impact in the farm produce trade bteween China and the Koreawhen the Korea-US FTA implemented,so China needed to improve trading systemand change the trading environment in the farm produce international trade.Under theframe of WTO and from a strategic height,China and the Korea determined rationaltransition time and the degree of liberalization in the agricultural free trade,establishedrational compensation mechanism so that China and the Korea agree on theChina-Korea FTA and others FTA.China needed to optimize the trading environmentand expand the trading scale and increase trading quality in the farm produce,makingChina become the really trading powerful country in terms of the farm producetrading.