Agriculture Reference
In-Depth Information
From the increasing TCIs in recent years for ASEAN's exports and China's
imports in food and live animals (SITC0) and in all agricultural commodities,
we could argue that ASEAN's exports to Chna have been experencng
some structural adjustments based on China's market demand. Moreover,
such adjustments are more apparent and started earler n the food and
live animals sectors (SITC0). Such adjustments seemed, however, not to
be happenng n Chna. The ncreasng TCI of ASEAN's exports and Chna's
mports corresponds wth the rsng share of exports to Chna n ASEAN's
total agrcultural exports. Wth Chna's market becomng more and more
important for ASEAN's agricultural exports, ASEAN's agricultural production
structure has started to adjust to match Chnese demand.
The changes n the TCI have another mplcaton. The larger and ncreasng
value of the TCI for ASEAN's exports and Chna's mports reveals that ASEAN
s sellng what Chna wants to buy and ths match s becomng stronger.
Therefore, exports from ASEAN will meet less resistance in entering China's
domestic market. Consequently, ASEAN farmers will not only enjoy more
Figure 12.9 TCIs for China and ASEAN in all agricultural products,
1992-2005
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
TCI of Chna's exports and ASEAN mports
TCI of ASEAN exports and Chna's mports
0.2
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Source:
Authors' calculations from COMTRADE data.
