Study On The Impact Of The Preferential Tariff On Cross-strait Agricultural Trade Under The ECFA

After 30 years since the policy of reform and opening up, both sides enjoy a good cross-strait economic and trade relations, despite of the impact of various political factors. In addition, their development is quite uneven, but generally speaking, the cross-strait economic and trade exchanges have become increasingly frequent and close. Especially in recent years, the two sides fixed the "1992 consensus" based on the recovery of institutionalized consultations. Therefore, we have the basic realization of the two-way cross-strait direct "three links." On June 29, 2010, both sides signed a long-term "Cross-Strait Economic Cooperation Framework Agreement" short as the ECFA), but also inject new impetus to cross-strait economic and trade cooperation. Trade activities, as an important link on cross-strait economic cooperation, played an increasingly important role apparently. As we all know, cross-strait agricultural trade has a long history, playing an important role in the overall cross-strait trade. Therefore, handling cross-strait agricultural trade issues is not only a critical economic issue, but also an essential political issue. Scholars have launched a large number of research on ECFA, but what are the main factors affecting cross-strait agricultural trade growth? Is preferential Tariff an important factor of the trade? How can we the potential of cross-strait ECFA era after agricultural trade growth? In particular, under the situation of current Chinese New Normal, how many factors will affect the cross-strait agricultural trade? So how should we break through the barriers of trade in agricultural products between the two sides? These important issues are urgent in-depth study of mining and give a clear answer.By sorting and bibliometric analysis, this paper tried to reveal the current situation of cross-strait trade in agricultural products, the main factors in cross-strait trade of agricultural products. Then the results show the facts that cross-strait agricultural trade is promising. And the preferential tariff is not an important factor affecting cross-strait trade of agricultural products. Therefore, how to promote cross-strait agricultural trade potential into full play is the key to this paper. This paper studies the three core issues:(1) What are the main factors affecting the cross-strait agricultural trade growth? (2)Is preferential tariff an important factor affecting the cross-strait agricultural trade? (3)How can both sides promote the development of trade in agricultural products by optimizing tariff reduction methods and other using ways?This paper consists of five parts, the first chapter is an introduction, the main context is research background, research value, brief literature review and evaluation of their studies. The second chapter is the effect of tariff concessions and regional free trade theory, the main use of these two theories preferential tariffs on cross-strait agricultural trade after effects regulate analysis and empirical analysis below were compared. The third chapter is the status quo of cross-strait trade of agricultural products before and after the signing of ECFA empirical analysis, including the history of cross-strait agricultural trade cooperation, the situation in Taiwan to the mainland import and export situation of agricultural production and export of agricultural products to Taiwan and the mainland, as well as cross-strait agricultural exchanges structure. The fourth chapter is whether the preferential tariff for agricultural products is an important factor affecting the growth of trade between the two sides of an empirical test. This article will be selected in 1993-2013 time series data including Taiwan GDP, mainland GDP, as well as Taiwan and the mainland tariff level scale of the continent’s population, the continent’s agricultural added value, and finally through the unit root test, stability test, cointegration test equation, this four sequence data multiple linear regression, the conclusion is the tariff is relatively important factor affecting the cross-strait agricultural trade. The fifth chapter is the policy recommendations. In order that the cross-strait ECFA preferential tariffs on agricultural products play a better role in promoting trade, we can improve it from the following aspects:l.to expand the scope of concessions; 2.flexible use of concessional method; 3.conversion methods of assessment; 4.accelerate customs clearance integration.