Research On Chinese Agricultural Products Export Problems Under The Framework Of China And South Korea FTA

In the historical trend of regional economic integration, China and Korea signed FTA(free-trade agreement), which accords with tendency of history, as well as primary interests of people in the two countries. China and Korea are adjacent to each other in regional aspect, similar in culture and share a long historical source. Since 1992 when China and Korea established diplomatic relation, economic trade between the two countries become more and more frequent, the trade scale is continuously enlarging, meanwhile the trading cooperation is much more tightened than ever. Until 2015, China imported $137,140 million from Korea and exported $90,237 million in return. The total amount of bilateral economic trade has reached $22,737,700 million, leading China to become the biggest economic trading partner of Korea in global market while Korea to be the third largest partner of China. Since establishing diplomatic relations, Agricultural trade continues to grow between China and South Korea, China has been South Korea important agricultural product import source, Agricultural trade has been important position in trade between the two sides. Agricultural products is the focus of the debate in china-south Korea negotiations, In this paper, through the study of china-south Korea FTA on agricultural policies, which can provide valuable reference for Chinese agricultural exports promoting Chinese agricultural products export to Korea. At the same time, China and South Korea FTA is the first free trade agreement of northeast Asia,which having important historical significance and providing a valuable reference for the establishing of China, Japan and South Korea free trade area.This article structure arrangement is as follows: In the first chapter,there is some statement about the background and significance of the topic and research status at home and abroad. Through trade complementary index(TCI), Revealed Comparative Advantage Index(RCA), index of intra-industry trade(IIT),the second chapter is analysis of the current situation of China and South Korea agricultural products trade in many aspects, investigates each other’s advantages and disadvantages in the china-south Korea agricultural products trade, which provides adequate theoretical basis for Analysis of the problems of China and South Korea agricultural products trade. In the third chapter there is analyzing the problems and reasons of China and South Korea agricultural products trade from each other’s parts. In the fourth chapter, there is analyzing the opportunities and challenges of China’s agricultural products exported to South Korea in theoretical and empirical in the background of the China and South Korea FTA, On the basis of agricultural policies in the China and South Korea FTA and Agricultural products trade status of China and South Korea. In the fifth chapter, there is some policy and suggestions in government and enterprises level.On the basis of theoretical and empirical analysis, this essay has got some conclusions: it is easy to calculate that China owns a strong comparative advantage over Korea, at the same time “intra-industry trade index” of primary goods is relatively low, which means there is great potential increasing space in agricultural trading between two nations; The signature of China-Korea FTA is both an opportunity and a challenge to China. According to “tariff effect theory”, the decrease of tariff level of Korean agricultural products can trigger an increase of export of agricultural goods from China to Korea, as well as the rise of export price, which is a huge challenge to our country. At the same time, due to Korea’s firm consciousness of protection for domestic agricultural goods, and the tact that Korea has a set of intact technical barrier system, Korea must carry out more strict technical barriers to protect domestic agricultural goods. Through “gravity model” analysis, in the past ten years, Korea’s technical barriers have a significant effect in China’s exporting to Korea. Because technical barrier possess features such as validity, elusiveness and wide spread of protection, it has been a conventional trade protection method of developed countries.