Study Of The Agricultural Products Trade Between China And Japan Based On The Perspective Of FTA

ABSTRACT:With the development of world economic integration, more and more countries promote economic development through the regional economic integration organizations. The two very different natural endowments laid the foundation for the agricultural trade, This complementarity between the two countries will bring great opportunities for the development of the agricultural economy. One of the biggest obstacles in Sino-Japan FTA is to promote agricultural trade.We firstly analyzed the relationship between trade in agricultural products through Trade intensity index, Intra-industry Trade Index, Trade Complementarity Index, Trade Competitiveness index. We also used the trade gravity model to predict the impact of tariff reductions on agricultural products trade after the establishment of FTA. It can be concluded as follows:(1) The development of Sino-Japanese agricultural trade is very rapid, but the trade surplus is expending.(2) It is comfirmed that Sino-Japanese agricultural trade is highly complementry. Establishing a FTA will expand the trade.(3) Trading parties GDP, per capita GDP difference with China (Japan) show a positive relationship between agricultural export trade, the distance and the tariff show a inverse relationship by Trade Gravity Model.(4) Assuming according to China-ASEAN Free Trade Area tariff reductions in the proportion of tariff cutting would produce a substantial increase in Japanese exports amount.(5) The volume and potential of trade will increase substantially no matter we build the FTA or not.