China and ASEAN countries inked “Nanning Consensus” on stepping up agricultural exchange and cooperation at a summit forum held on Monday in Nanning, capital city of Guangxi Zhuang Autonomous Region.

“Agriculture is a major field for strategic cooperation among China and the ASEAN members, which is an important part of the construction of the China-ASEAN Free Trade Area (FTA)”, said Qin Ruixiang, deputy director of the Standing Committee of the People’s Congress of Guangxi.

The parties identified seven areas as the priorities for exchange and cooperation, including agro-industry and food security, new crop varieties and animal breeds, agricultural sciences and technology, biomass energy, agricultural processing and logistics, animal husbandry and fishery.

They also vowed to optimize the allocation of resources such as labors and funds, expand cooperation on technology and personnel training and intensify agricultural investment in ASEAN.

The summit forum was held ahead of the 6th China-ASEAN Expo in Nanning to be held from Oct. 20 to 24.

An agricultural exhibition of 600 booths would be held for the first time at the expo, which aimed at expanding opportunities for agricultural cooperation among China and the ASEAN countries, Qin said.

China and the ASEAN countries launched the early-harvest program in 2004, which set to scrap tariffs on about 600 agricultural imports in both sides by 2006. The program was part of the FTA framework agreement signed by China and the ASEAN countries in 2002.

Xu Ningning, Secretary General of China-ASEAN Board of Commerce (China) said the program had boosted agricultural production in the region and accelerated trade of agricultural products.

Data from the China’s Ministry of Agriculture showed China’s agricultural exports to ASEAN hit 4.58 billion U.S. dollars in 2008, up 16 percent from a year ago, and agricultural imports from the ASEAN rose 30.2 percent year on year to 9.24 billion U.S. dollars.

Rasphone Sitaheng, minister of Agriculture and Forestry of Laos, introduces the development of Laos’ agriculture during the China-ASEAN Agricultural Cooperation Summit Forum in Nanning, southwest China’s Guangxi Zhuang Autonomous Region, on Oct. 19, 2009. More than 200 experts and representatives from Asean countries, Russia, the United States and Isreal attend the forum which kicked off here on last Monday.

Results from a 42 country partial equilibrium dynamic agricultural simulation model indicate that the effects on international markets are likely to be small with world price impacts of less than one percent. The set of policies partially offset each other in the international market. Results indicate increased returns to farmers and lowering domestic prices to consumers.

China’s producers increase production slightly because of increased input subsidies. Exports are reduced because of applied export tax and decrease in value added tax rebate. Domestic consumer prices would likely decrease by 2 to 4.5 percent in real terms. The lower prices benefits lower income and rural households, and benefit expanding beef, pork, and poultry production in China.

Source: International Association of Agricultural Economists (2009 Conference)