Electromechanical Products Trade Between China And The GCC In Perspective Of FTA

According to the proposed fourth meeting of the National People's Congress's"Government Work Report":China will accelerate the implementation of the FTA strategy in 2016,and will focus on promoting the construction of Free Trade Area along the "one belt one road".As an important part of the construction of the" one belt one road",terminated since 2009,CGCC to restart negotiations in January 2016,the two sides agree for completing a comprehensive consensus on the FTA during the year.The economics during China and the GCC are highly complement,having a great potential for cooperation.Electromechanical industry has been our basic and strategic industries,it is one of the main niche products during China's exports of the GCC.Meanwhile,the GCC as one of the world's important import and export of mechanical and electrical products area,but also has always attached great importance to the development of mechanical and electrical industry.The component of Mechanical and electrical products in the CGCC trade is large.This article focuses on the export competitiveness of china electromechanical products in the GCC market and economic effects of trade liberalization of electromechanical products between china an gcc to study the trade of electromechanical products under the FTA perspective.First,summarize the current situation and characteristics of trade in the mechanical and electrical products,and found that the Electrical and Mechanical Industry complementarity than competition sex;Next,the article discusses the build foundation and processes of CGFTA,using CMS model to analysis the factors affecting export of electromechanical products to the GCC,using the extended gravity model to analyze the factors affecting bilateral mechanical and electrical products trade between CGCC,as basis for analysing how to enhance our competitive of electromechanical products in the GCC market.In addition,we use SMART model on the CGFTA to simulate the economic effects of trade liberalization about electromechanical products and calculate the sensitive items of electromechanical products,While analyzed moderation and adjustment costs of trade liberalization.The results show that:taking progressive tariff reduction way to achieve trade liberalization between CGCC about electromechanical products,can promote the development of the mechanical and electrical industry of the two sides and enhance consumer welfare.However,trade liberalization must be set moderation,and to adjust the high cost of machinery and to give protection and preferential policies.