Trade Study Of The Wool Between China And Australia

The international trade has entered a new era between China and Australia:The free trade agreement has been bagan in May 2005,and the two countries has signed the free trade agreement under the background of regional economic integration.The cool trade is important part of coutries between China and Australia,also it is controversial and sensitive issue in coutries free trade.So the research of cool trade has important real and theoretical values.Firstly,the paper studies total and classified cool trade by the present condition of cool trade between China and Australia,then I have the conclusion that cool trade is complementary,and the competition is not big.Secondly,I selected the trade indexs to study the two countries cool trade from the competitive and complementary.And I also have conclusion that cool trade is complementary.But the countries competitions are rising.Newly,I use Constant Market Share Model to analyze the influence factors of import cool of China from Australia,the influence factors are made up with the demand,structure and competition aspects.And I have the conclusion that the main influence factors are demand and structure aspects.The cool competition of Australia is very competitive,but the contribution of competition is considerable small.Afterly,I used Panel data of China and other trading countries to do linear regression from import and export aspects.The empirical study shows that the potential of cool trade is very large between China and Australia.SO the building of free trade agreement can effectively promote the bilateral trade.Lastly,I put forward some suggestions from the development of China's wool industry and the establishment of a free trade area.