ABSTRACT:Cross-strait cultural exchange goes back to ancient times, after the reform and opening-up policy in China , economic and trade relations is becoming more and more frequent. Since 2002, the Taiwan region have adjusted some trade policy to make the cross-strait agricultural trade grow fast, which reverse the decline trend year by year before WTO accession. Cross-strait economic and trade relations get a reply and development , and the cross-strait trade in agricultural products have had a Sharp increase, from $ 374 million in 2002 to $ 1.863 billion in 2011. Over all trade patterns and different sides, agricultural trade is the only area which keep surplus between Cross-Strait trade. As the further expand in scale and scope between cross-strait agricultural trade and the upgrade of industrial competitiveness in mainland, the favorable balance of mainland is expected to continue to increase, which can relieve the imbalance situation of cross-strait trade to some extent.
To alleviate this situation, this article will be based on the theory of comparative advantage, analyze the reasons of the imbalance situation of cross-strait trade. Using cross-strait trade competitiveness index and revealed comparative advantage index assess competitive advantage in their respective markets on both sides of agricultural products in technology. Then we should adjust and optimize industrial structure , promote diversification of agricultural exports.
Keywords: Cross-strait; Agricultural trade; Comparative advantage theory