Complementarity Analysis On China And ASEAN Agricultural Trade

China and ASEAN are both important agricultural countries in the world, which have similar technology and foundation in agriculture. The foundation of CAFTA has great influence on agriculture and agricultural production. In 2002, CAFTA was been signed and both sides determine to achieve goals of the FTA. In 2004, CAFTA began early harvest program, which mainly decreased agricultural tariffs and promote the development of the bilateral agricultural products trade. By 2006, most of the agricultural products reached zero tariffs, and bilateral agricultural products trade topped $10 billion. By 2013 trade peaked at $39.08 billion. Although agricultural products trade is expansion, China’s agricultural trade deficit with the ASEAN increased year by year. So it is necessary to study agricultural trade development of China and ASEAN.This article first analyze the bilateral trade of agricultural products between China and ASEAN, which found that China and ASEAN trade of agricultural products increased year by year. But since 2002, China’s import growth rate to ASEAN is less than export growth rate, so that cause our trade deficit expansion year by year. Although export growth is greater than import growth in last two years, the trade deficit is still more than $14 billion. Secondly, this paper ranks agricultural products trade between China and ASEAN, finding the top three countries are Malaysia, Indonesia and Thailand. This three countries account for 77.32% of the whole of China to ASEAN agricultural products trade. Then, this paper respectively using trade complementary index(TCI) to analyze China and six countries of ASEAN agricultural products trade. It is called trade complementary study. Results show that Malaysia and Vietnam trade are highly complementary to China, but China has weak complementary to these two countries. Indonesia and Thailand to China agricultural trade have strong complementary in both sides. For detailed analysis of the trade agricultural products complementary between China and ASEAN,this article use three coding of SITC Rev.3 of agricultural products to analyze Malaysia, Indonesia and four coding of SITC Rev.3 to study Thailand. The results show that owing to China and ASEAN in geographical location, differences in factor endowment and the market demand, both sides have strong trade complementary in agricultural trade. Last, in to promote the development of the agricultural products trade, this paper points that China should increase the degree of standardization of agricultural popularization, enhancing the added value of production, doing scientific research strength and taking the specialized course.