The Research On The Impact Of EU’s Environmental Regulations On China’s Export Of Agricultural Products

Agriculture is the fundamental section of the whole economy. It is the source of foodand clothing which people rely on to make a living. The research of agricultural producttrade is always a hot spot. The European Union is the world’s largest import country ofagricultural products. It is also the second largest export market of our agricultural product.At the same time, the strength of environmental regulation in EU is the most strict andcomplex in the world. Up to now, the amount of EU’s law paper about environment is upto400and the nonlegal policy document is up to more than100. These documents involveevery aspect of the economic and political life of EU.This paper firstly reviews the papers about the relationship of environment and trade.Then introduces SER with graphs and tables, summarizes the history and present situationof the agricultural product trade between China and EU. The theoretical analysis focuseson the supply angle、demand angle and fare angle. The empirical study of the paper usesthe gravity model to analyze the impact of EU SER on the exportation of China’sagricultural products. The paper optimizes the gravity model which removes the distanceand adds the SER. In the measurement of SER we use the method of longitudinalassignment. We assigned different increase to SER according to the announcement ofregulation measures. We use generalized least square method in empirical study, and itcomes out that the SER of EU has a negative relation with China’s agricultural productsexport.In view of the prohibited effects of EU’s SER to the export of China’s agriculturalproducts, the paper in the end comes up with some political advices for the governmentand the firms.