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An Analysis Of The Current Situation Of The Farm Product Trade Friction Between China And Japan And Countermeasures

Posted on:2010-05-26Degree:MasterType:Thesis
Country:ChinaCandidate:L L SunFull Text:PDF
GTID:2189360272498378Subject:International trade
Abstract/Summary:PDF Full Text Request
China and Japan are two neighbouring countries separated by sea, and they are also significant trade partner to each other. The trade of farm product is of great importance to China and Japan. Because the natural resources of Japan is absent; the aging of population is serious; the farm product can't be self-sufficient, therefore it largely depends on imported farm product. China being the neighbouring country of Japan, becomes the main farm product importation country of Japan, not only because its price of farm product is relatively cheap, but also the transport charge is low and time of shipment is short. At the same time, Japan is the biggest export market of our country's farm product. The volume of farm product trade between China and Japan expands year by year.However, with the constant growth of the volume of farm product trade, the trade friction emerges. The trade war of farm product between China and Japan can be dated from the year 1995 when Japan restricted the exportation of our country's ginger and garlic. In 2001, the Japanese government announced that it would execute emergent restriction measures on the importation of scallion, mushroom and grass which mostly came from China. The trade friction between China and Japan became apparent. In the year 2006, the "Positive List System" implemented by Japan has an even larger impact on the exportation of our country's farm product and makes the trade friction of farm product between China and Japan become more serious. We can see that the range of the trade friction is becoming larger and larger. So the paper tries to review the development of the trade friction and analyse the deep incentive from different aspects, and puts forward corresponding countermeasures and suggestions. In chapter one, the paper firstly have a review on the relative theory of trade friction and literature. The literature review concluded foreign scholar's theory of trade friction from microcosmic aspect, macroscopic aspect and political arithmetic aspect. Their studies of the theory lay a good foundation for specific study of the trade frictions. Then the paper has a literature review on the study of domestic scholars. Their studies of the farm product trade friction between China and Japan mainly explains the causes from the aspects of economy, politics and trade barrier. Their studies have instructional effect on further development on the farm product trade between China and Japan. However, in the face of the increasingly complex trade friction we should further discuss how to deal with the trade friction more compatibly and effectively. This is also the aim and meaning of the paper.In chapter two, the paper has a simple review on the development of the trade of farm product between China and Japan and the evolvement of the trade friction. Also the paper concludes the features of the trade friction: the extension of the trade friction is large, the influence is strong, the use of "Technical Barriers to Trade" is wide, eta. Then the paper gives further analysis to the trade barrier widely used by Japan recent years. The paper finds that the "Sanitary and Phytosanitary Measures", "Intellectual Property Barriers to Trade" and "Technical Barriers to Trade" are the primary restriction measures of Japan. Under the influence of these trade barriers, the exportation of our country's farm product to Japan is frequently holdup.In chapter three, the paper analyses the causes of the trade friction from three aspects: Japan, China and the limitation of GATT/WTO system. Japan initiated farm product trade friction between China and Japan, so that it can ensure the employment of the farmers and safeguard the stability of the society. Moreover, the restriction measures of Japan also have something to do with the contend of its domestic interest groups and political factors. From the point of China's factor, the paper analyses the comparative advantage of Chinese and Japanese farm product by using Revealed Comparative Advantage Index. And the paper finds that compared with Japan's farm prodcut, our farm product has competitive advantages. The advantages are mainly caused by the rich natural resources of our country. This also causes the fact that the price of our farm product is low and the technology content is little. And also the categories of the product is few, the structure of the exportation market is single, all of which have a big impact on Japanese farm product. The benefit of Japanese farmer is harmed and the trade war will be unavoidable. Moreover, the quality standard of our country's farm product being low, the processing degree being low and the organization of agriculture union being loosing are part of the reasons that cause the trade friction. Also due to the fuzziness of the relative rules of WTO and the limitation of its dispute settle mechanism, Japan has the opportunity to setup trade barriers and create trade frictions by making use of them.The farm product trade friction between China and Japan has huge impact on both China and Japan. In chapter four, the paper analyses the influence on China and Japan respectively. Due to the influence of "Positive List System" and other trade barriers, the cost of our farm product's exportation rises and the comparative advantage is weakened. Also, the quantity of farm product's exportation is reduced. Though Japan restricts our farm product in some degree by using trade barriers, the negative influence on Japan can't be ignored. Because of Japan's emergent restrictions to our farm product, China had to take tariff measure to Japan's exportation product, which made Japan's car exportation and other trade with China suffer a lot. What's more, Japan's over protect to agriculture is not good to the adjustment of its industrial structure. Also the benefit of Japanese customers are affected under the influence of the trade friction.At last, in chapter five the paper puts forward countermeasures and suggestions according to above reasons. The paper thinks that first we should improve the quality of our farm product, optimize industrial structure and increase technology content of the product. Then, we should diversify exportation markets and find wider oversea markets to avoid great impact on Japan market. Furthermore, we should strengthen the negotiation of the governments to avoid and settle the farm product trade friction; fully develop the function of agriculture union and set up good early warning system; make fully use of the rule of WTO to protect our own benefit. So that we can create a good environment for the exportation of our farm product and promote the healthy development of the farm product trade between China and Japan.
Keywords/Search Tags:farm produce, trade friction, China and Japan
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