Ensuring Ecological Development Of Cotton Industry Chain And Stabilizing Domestic And Foreign Cotton Prices

What kind of pressure will China face in the new round of international trade competition?

How should we guarantee?

Chain development and international competitiveness of textile enterprises.

The TPP negotiations launched by the United States include the major economies in Asia Pacific, but China is excluded; while the Asian Investment Bank launched by China, the United States actively persuaded its allies to refuse to join.

China faces greater pressure in the new round of international trade competition. South Korea and Australia play an important role in the Asia Pacific region, and maintain bilateral trade relations with South Korea and Australia.

Since the establishment of diplomatic relations in 1972, bilateral economic and trade relations between China and Australia have been deepened. In October 2003, the framework for trade and economic cooperation between People's Republic of China and Commonwealth of Australia was adopted. In June 2015, the two sides also signed the "People's Republic of China and Australian government self occupied trade agreement", and the Sino Australian relationship was upgraded from a bilateral relationship to a comprehensive strategic partnership.

The conclusion of the FTA will effectively deepen and liberate bilateral trade and investment.

China Australia FTA has eliminated trade protectionism and barriers, but there are reservations in sensitive areas.

As an important exporter of agricultural products and a large agricultural country, Australia and China have achieved a higher level of liberalization in the field of agricultural products under the framework of the agreement.

After the end of the pition period, the average tariff of China's agricultural products will be reduced from 12.94% before the implementation to 0.51%, accounting for 93.7% of the tariff of agricultural products.

99.4% of Australia's agricultural products will be zero immediately after the agreement comes into effect, involving 99% of total imports from China, and the rest of the products will be fully liberalized in 3 years.

In order to protect local food security, ensure the autonomous supply of important crops and avoid the impact of important industries, China's agricultural products market is not completely open, that is, the agreement does not include the trade freedom of rice, wheat and cotton.

Cotton is China's second largest crop after grain and an important industrial raw material. It bears the responsibility of supporting agriculture and benefiting farmers, supporting the rapid development of China's textile industry.

After signing the Sino Australian FTA, it will greatly promote textile exports.

At this time, it is particularly important to ensure the healthy development of the cotton industry chain, not only related to the interests of cotton farmers, but also the international competitiveness of textile enterprises.

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The ecological development of the industrial chain and stabilizing the price difference at home and abroad are important tasks.

However, because of the different cotton price formation mechanism, the cotton price difference is inevitable.

The international cotton price is dominated by supply and demand. The domestic cotton price was protected before 2014, and then the target price policy was implemented. The price follows the market trend.

In order to ensure the autonomous supply of important crops, the adjustment of state policies has made the domestic cotton prices never truly marketable.

In recent years, the potential of national cotton reserves will be digested, and the domestic and international cotton prices will be weak. However, the sowing area of cotton will drop by 20% over the same period this year. The supply of high quality cotton will be tight in the market, and the level of national cotton reserves will not be guaranteed. At the same time, China will reduce the quota and reduce imports, which may lead to a bad cotton price in the future.

After the price difference arises, cotton enterprises will be forced to participate in international competition with high cost of raw materials.

Clear cotton development strategy, Qilu commodity trading center proposal, first of all, we must strengthen and accelerate the cotton farmers direct subsidy details.

Stabilizing the area of seed cotton, protecting farmers' income, increasing self-sufficiency rate and ensuring the safety of the cotton industry; secondly, changing the mode of cotton production, promoting mechanization, improving production efficiency, reducing production costs, improving cotton quality and enhancing international competitiveness;

Thirdly, it will support the development of information and intensive development of cotton related enterprises. The issuance of import quotas will be dynamically adjusted according to the actual production capacity to ensure the sustainable development of the cotton related industry. Finally, we should strengthen the pricing and circulation system of cotton, develop the cotton electronic information market, and implement the government price monitoring and capacity deployment.

Regulation and government intervention work together to control the difference between domestic and international cotton prices.