Competition And Cooperation In Agricultural Products Trade Between China And ASEAN

Developing countries' agricultural products trade doesn't increase rapidly like manufactures. It restricts agriculture development to some extent. It happens because many trade and non-trade barriers in agricultural products cause to agriculture develop slowly and to alleviate poverty plan not work. The main issue that developing countries are probing now is how to fulfill rural economic development with help of enlarge agricultural commodity demand by trade. Now, most of developing countries' policies concentrations convert to construct the preferential arrangement and seek larger spaces for economic development. Most of developing countries consider that they must divide the work and cooperation with one another in order to change injustice and unreasonable rules in international economics and to break away from mainly dependent on developed countries.The regional cooperation between China and ASEAN develop rapidly in recent years. The two sides' leaders make a decision to construct the China and ASEAN Free Trade Area(C-AFTA) in lOyears on Dec. 2001. The signature of the China and ASEAN overall economic cooperation frame agreement means the program is get to really start. The two regions get into a new develop stage. However, the East Asia regional integration benefits conflict mainly focuses on agricultural products. So, agriculture and agricultural products problem are always an impassable gulf. However, in the plan of C-AFTA, the agriculture is the one of the important cooperation field in five main areas. It is also the main region to cooperation and change between two sides.China and ASEAN have the same level and stage in economic development, so the bilateral trade relations maybe mainly competition. But the paper puts forward that the climate mainly influenced to produce and trade structure for the agriculture and agricultural products. China lied in temperate zone, but ASEAN in the tropics. The climate difference cause to the difference resource between two sides, and so is the structure of agricultural products trade mainly complementarily. The paper uses the export similarity and trade complementarities index to examine the preceding hypothesis and furthermore give the type of agricultural products with the competition and complementarities in current stage. China and ASEAN agricultural products trade product similarity larger than market ones,so it is the product difference results in bilateral trade relation mainly complementarities. On the other hand, China and ASEAN agricultural products trade intra-industry trade is smaller than its' average level, it can be explained that the bilateral trade are mainly based on resource, and the bilateral trade for exchange goods another not have.Basis on the complementarities trade relations, reinforce the agricultural products trade cooperation and impetus bilateral trade increase may promote agricultural resource allocation and comparative advantage theory to act. In the fine environment and market mechanism, complementarities trade relations may result in agricultural products trade increased rapidly and steadily. But the fact doesn't appear like that. China export to ASEAN not increased like expectation, however, the huge fluctuation to be found.Two countries or regions trade fluctuation may be explained by import demand, structure effects and competition effects. China and ASEAN agricultural products total import can give some explanations bilateral trade fluctuation, and from the export structure adjustment point of view, although China export adjustment ability to adapt import demand changes has been improved, China ability to adjust export to ASEAN is lower than ASEAN is to China. From the agricultural products competition, in the process of economic development, China primary product's competitiveness is losing, but ASEAN ones still have lager comparative advantage in the same product. The comparative advantage of primary product losing result in agricultural products competition decreased, it may affect China export to ASEAN countries to some extent. As we know, agricultural product is mainly the raw material of manufacture, so when China entry into international trade system, she should be actively take part in the regional cooperation in order to resolve resource restrain in process of China rapidly economic development. The paper uses the Constant Market Share Model (CMS) to analysis three effects to China export to ASEAN fluctuation. The result indicated that: the most important influence factor agricultural products that China export to ASEAN is ASEAN import demand; and the structure factor is the second important factor. China import from ASEAN is also affected by China agricultural products total import demand, but the ASEAN's product competition is the second important factor.The paper research results indicate that: China and ASEAN bilateral trade fluctuation is mainly affected by total import demand. The classical international trade theory tell us that the free trade by established the free trade area and reduction the tariff can finally produce trade creation. On the other hand, through impetus regional share out the work and...