Study Of The Double Agricultural Trade Friction Between China And South Korea With A Proposition That Cooperation Would Ensure Better

China and South Korea have established a diplomatic relationship since1992. From the very beginning, this diplomatic relationship between the two countries have significantly increased the value of trade by$6.4billion, with an outstanding growth of$256.33billion in2012, an incredible increase of more than40fold in20years. The bilateral trade, has along with a rapid trade expansion has resulted in the rapid development of trade between China and South Korea’s agricultural products. Since China’s accession to the WTO, agricultural product trade between the two countries has more than doubled from$2.17billion in2002to$4.82billion in2011. However a disagreement broke out between China and South Korea in2002, with garlic being the main product of the trade friction, thereafter leading to a kimchi storm eruption in2005which has had a tremendous influence and great impact on the bilateral economic and trade relations between the two countries.Due to China’s low cost production of agricultural products, this only reaches20-30%of South Korea’s price level, which results in China having a comparative advantage in the trade of agricultural products between the two countries. Agricultural exports to South Korea has always maintained a large surplus, and thus forming the imbalance in structure of the agricultural products trade between China and South Korea. Meanwhile, underway at the China and South Korea free trade agreement negotiations, the opinions of the agricultural products is far due to the great differences of opinions. This article mainly aims at the two agricultural products trade friction situations between China and South Korea which occurred firstly in2002and then secondly in2005. Research needs to be maintained in order to avoid another agricultural products trade friction between China and South Korea from happening again by providing and proposing reasonable suggestions.This paper continues to summarize and analyze the friction events of garlic and the kimchi storm eruption respectively and simultaneously addresses the contrast between the two countries’claims on the above events and the reasons believed to have resulted in them. In order to analyze the future possibility of agricultural products trade friction once again between China and South Korea, a trade status quota should be implemented to process the statistical analysis based on the intra-industry trade theory, using intra-industry trade index. In addition, the current situation of accidents in South Korean imports from China agricultural products continues. Hence, presently there is agricultural products safety on accidents cooperation between the two countries. Lastly, I suggest, in order to prevent the China-South Korea agricultural products trade friction from reoccurring, both China and South Korea need to implement and promote the steady development of agricultural trade between the two countries which will ultimately provide direction in future discussions of cooperation between the two countries.