Agricultural trade across the strait has been increasing since 1979. At this moment, both sides are eager to be members of WTO and direct cross-strait trade are expected. It has been conjectured that significant impacts upon Taiwan's agricultural sector will be profound and immense. Therefore, policy analysis on the impacts of trade liberalization upon both sides has bring into focus recently, international trade theory. Policy simulations based on the agreements of this project construct an international agricultural trade model based on WTO were performed. Important results are: 1) Trade liberalization reduces agricultural subsidies from major industrial countries and world supply decreases. As a result, world prices of major agricultural products increase. 2) Due to different domestic agricultural policies, trade liberalization has different impacts upon agricultural sectors on both sides. Overall, agricultural exports from Mainland will increase and its imports decrease. On the contrary, Taiwan's agricultural trade deficit will increase. 3) Complementary relations between both sides will enhanced after trade liberalization.