Research On The Development Of Agricultural Products Trade Between China And Chile Under FTA Framework

Because Chile attaches great importance to the role of international trade in developing its economy,it ranks among the top Latin American countries in terms of trade freedom,market openness and global credit rating.As a major importer and exporter in the world,China play an important role in cooperating with other countries.With the deepening of Chile’s market opening in recent years,China and Chile jointly signed the China-Chile Free Trade Agreement in 2005.Over the past 15 years,the two countries have continuously strengthened economic and trade exchanges.Their cooperation has been further upgraded.On March 1 2019,the protocol on upgrading the China-Chile FTA officially came into force which marked a new stage of bilateral cooperation.Following the agreement on upgrading the China-ASEAN Free Trade Agreement,this is the second upgrading protocol signed by China and the first signed by China and Latin American countries.In the supplementary agreement on trade in services and investment,China and Chile have achieved zero tariffs on 54 products from the two countries and brought the total proportion of tariff-free trade products between the two countries to 98 percent.The China-Chile Free Trade Agreement,as a bright spot and a good example of ChinaChile cooperation,has opened up huge space for bilateral trade cooperation and yielded fruitful results in bilateral economic and trade exchanges.Statistics show that bilateral trade between China and Chile reached $42.8 billion in 2018 which is six times that of 2005.Agricultural products trade has been playing a significant role in the trade between the two countries,such as Chinese consumers of Chilean cherries,blueberries,avocado and salmon high-quality agricultural products.The agricultural products could meet the numerous daily consumption demand of Chinese families that resulted in China became Chile’s largest trading nation of agricultural products.Under the concerted efforts of the two countries and the multi-party promotion,the agricultural products trade between China and Chile has developed rapidly and China has become the largest surplus country of agricultural products trade in Chile.However,with the deepening of cooperation,the trade structure between the two countries is still unreasonable.Whether the trade potential of the two countries has been fully realized since the signing of the trade agreement also needs to be analyzed and measured.For the study of China and Chile agricultural trade how to better development,this paper from the trade scale,trade structure and trade status three angles analyzes current situation of the development of China and Chile’s agricultural trade.The paper revealed comparative advantage index,trade competitiveness index and trade complementarity index and so on from two dimensions of trade competitive and complementary to China and Chile agricultural trade relationship and then built China and Chile agricultural trade gravity model,the empirical analysis of China and Chile agricultural trade potential.Through analysis and calculation,it is concluded that the trade of agricultural products between the two countries still has great trade potential and further development space.Finally,it draws the conclusions of the rapid growth of agricultural trade between China and Chile,the relatively stable trade structure,the overall low trade status,the low competitiveness of China-Chile agricultural trade,and the greater complementarity.The role of the government to implement the agreement upgrade,strive to expand the investment and service trade of agricultural products between China and Chile,actively promote the scale and quality of agricultural products trade between China and Chile,vigorously promote the construction of interconnected infrastructure between the two countries,establish five policies on the online and offline exchange platforms for agricultural products Suggest.