Agriculture Reference
In-Depth Information
opportunities provided by the ACFTA, they will have easier access to the
Chinese market. In comparison, the lower value of the TCI for China's exports
and ASEAN's mports mples that a lot of effort wll be needed for Chnese
exporters to grasp the opportuntes n the ASEAN markets.
Conclusions
Since China's WTO accession and the implementation of the ACFTA, bilateral
agrcultural trade between Chna and ASEAN has ncreased very rapdly and
new trends have emerged durng the process of economc ntegraton. The
following are the main findings of the preceding analysis.
Blateral agrcultural trade between Chna and ASEAN has ncreased
rapidly in recent years, especially since the negotiation and implementation
of the ACFTA and the launch of the EHP. ASEAN's agricultural exports
to China have increased rapidly, reaching US$5 billion in 2005. China's
agricultural exports to ASEAN have also increased but at a slower pace,
reachng US$2.2 bllon n 2005. ASEAN has been enjoyng a surplus wth
Chna n agrcultural trade and ths surplus has grown.
Chna's domestc market s becomng more and more mportant for
ASEAN's agrcultural exports. The share of exports to Chna n ASEAN's
total agricultural exports increased rapidly from 4.8 per cent in 1999 to
10.2 per cent n 2005. Chna became the thrd largest export market for
ASEAN's agrcultural products n 2005. Wth the full mplementaton of the
ACFTA, the share can be expected to rise further. China's status as an export
destnaton for ASEAN's agrcultural products wll be further enhanced;
however, such a trend has not been witnessed in China.
Chna can be expected to export more labour-ntensve agrcultural
products to ASEAN and mport more land-ntensve agrcultural products
from ASEAN. As Chna's RCA n labour-ntensve agrcultural products s
higher than that of ASEAN, it should be possible for China to increase its
exports to ASEAN in labour-intensive agricultural products—that is, fruits
and vegetables, processed products, animal products, and fish. Compared
with China, ASEAN has an overwhelming comparative advantage in certain
land-intensive agricultural products (such as rubber and palm oil). Therefore,
t wll be better for both sdes to explot ther comparatve advantage n
agrcultural sectors by deeper ntegraton of ther economes.
