A Study On The Impact Of Free Trade Agreement On China’s Textile Trade

With the rapid development of regional economic integration,in order to deepen trade cooperation with other countries,major economies have chosen to sign free trade agreements(FTA)with trading partners.Textile trade is an important part of China’s external trade and it plays a role in promoting China’s economic development.Under the background of the emergence of multilateral and bilateral free trade agreements,traditional industries urgently need to be transformed and upgraded,such as the textile industry,and also facing new opportunities and challenges.Therefore,empirically explore the impact of FTA depth on China’s textile trade,analyze the development trend of future trade liberalization and evaluate its impact on China’s textile trade,which is of practical significance for promoting the development of China’s textile trade and the transformation and upgrading of textile industry under the background of deepening economic and trade cooperation.First,this study expounds the theoretical basis and mechanism of free trade agreements which affecting China’s textile trade,and on this basis,clarifies the mechanism by which the signing and deepening of free trade agreements affect trade.Then analyzes the development status,and trade characteristics of China’s textile industry,and analyzed the future trends of free trade agreements based on high standard trade agreements.Furthermore,after using the HSM method to calculate the different depth indicators of the free trade agreements signed by China and distinguishing the products of the three main links of textile raw materials,textile products and clothing according to the different textile industry chain,we selects textile trade data between China and 88 trading partners from 2003 to 2019,explores the impact of the deep improvement of free trade agreements on China’s trade in textile raw materials,products and clothing by an extended gravitational model.Finally,on the basis of analyzing the development trend of trade liberalization in the future,the GTAP model is used to evaluate its economic effect on China’s textile industry output and textile trade.The innovation of this paper is that it focuses on China’s textile trade and examines the impact of trade liberalization based on the depth of free trade agreements;measure the effect of product depth of free trade agreements on different links of the textile industry chain by the extended gravitational model.The results show that the free trade agreements can promote the trade of products in all links of China’s textile industry chain,and the deepening of free trade agreements has different degree of restriction on the import of textile raw materials and export of textile products and clothing.The changes free trade agreements will have a promoting effect on the output and import and export trade of Chinese textiles in the future.Further in-depth research shows more details.First,different types of FTA provisions have different degrees of impact on textiles.The WTO+ clause mainly affects the export of textile products and clothing,while WTO-X mainly affects the import of textile raw materials and the export of products.WTO+ clauses have a stronger impact on textile trade.Second,with the increase of the depth of free trade agreements,the export of intermediate goods is most inhibited while the import of textile raw materials and the export of clothing are less restrained in different types of textile trade.Thirdly,compared with non-tariff barriers,tariff walls have a greater impact on China’s textile industry output,import and export trade.Tariff reductions have a positive effect on textile trade while the improvement of non-tariff barriers has a certain negative impact on trade.