Evolving Patterns of Agricultural Trade between Australia and China

Agricultural trade between Australia and China has increased significantly in recent years and the momentum is likely to continue. However, concerns exist in both countries over the likely negative impacts of the increased agricultural trade on their domestic industries. This paper examines agricultural trade patterns between Australian and China and addresses the question as to whether agricultural trade between them is competitive or complementary. Our study shows that agricultural trade between the two countries is set to further increase and there is a high level of agricultural trade complementarity between the two countries. Increased agricultural trade is unlikely to generate much negative impacts on their agricultural sectors as a whole, although producers in some industries may be adversely affected to some extent. In general, both countries will benefit from the expansion of agricultural trade between them.