Agriculture Reference
In-Depth Information
early harvest program (EHP) was launched successfully in 2004. According
to the EHP, from 2004 to 2006 the import tariffs on about 500 agricultural
commodtes traded between Chna and the orgnal ASEAN members
1
were
to be reduced to zero.
Many studies have been undertaken to explore the possible impacts
of the agreement. Some ndcate that Chna's export structure s qute
similar to ASEAN in many aspects; therefore, integration will increase
the competitive pressure on ASEAN economies (Tongzon 2005; Holst and
Weiss 2004; Wong and Chan 2002). Other studies find that the ACFTA could
promote net trade gains, stimulate economic growth and greatly improve
socal welfare n the partner economes (Suthphand 2002; Cha 2004). The
majority of studies, however, focus on impacts in the industrial sectors.
There are questons worthy of study wth respect to agrcultural trade
between Chna and ASEAN. What has happened to agrcultural trade
in recent years? Have China and ASEAN become more competitive or
more complementary in agriculture? Has trade integration helped the
two economes make adjustments towards ther respectve comparatve
advantages? What are possble challenges n agrculture as a result of the
free trade agreement?
This chapter is structured as follows: in the next section, we describe the
classiication of agricultural commodtes adopted for the exercse. Secton
three highlights the characteristics and changing trends in ASEAN-China
agricultural trade. Sections four and five calculate and analyse revealed
comparatve advantage and trade complementarty between the two
economies. Section six summarises the main findings.
Classification of agricultural commodities
We use the Standard International Trade Classification (SITC Revision 3) to
classify agricultural products. Agricultural products are defined to include:
SITC0 (food and live animals), SITC1 (beverages and tobacco), SITC4 (animals
and vegetable oils, fats and waxes) and some sub-groups
2
of SITC2 (crude
materials, inedibles, except fuels). The agricultural trade data are from
United Nations Statistics Division, Commodity Trade Statistics Database
(COMTRADE). All values of agricultural trade are in 2000 constant US dollar
prces.
