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    China VS South Korea Collision FTA Negotiation Spark

    2010/8/20 22:09:00 88

    FTA

    According to Chinese media quotations, Liu Youyi, Ambassador of Korea to China in August 5th (2010), said that China and South Korea are expected to start negotiations on the Free Trade Agreement (FTA) next year.


    At present, China is the main Korean country.

    export market

    Especially in steel and electronic products.

    In 2007, China and South Korea confirmed that the trade volume between the two countries should reach the target of US $200 billion by 2012.


    According to the statistics of the Korea customs office, the total import and export volume of bilateral trade between China and South Korea in 2009 was 140 billion 950 million US dollars, and the trade volume of Korea's trade with China was US $86 billion 700 million, and the trade import volume of Korea from China was US $54 billion 250 million.

    Ambassador Liu Youyi also acknowledged that there was some concern about the Cross Strait Economic Cooperation Framework Agreement (ECFA) when he was interviewed, but also said that the agreement could promote economic cooperation between the two sides. From a long-term perspective, China and South Korea should sign FTA to avoid future unfair trade cooperation.


    Because of the four years' cooperation between China and South Korea in 2006, it was "Sino Korea".

    FTA

    The work of China-Korea FTA Feasibility Study Report will be concluded by the end of this year. The relevant contents of the research report show that the signing of FTA between China and Korea will help to avoid some unfair trade relations between China and Korea.


    Since 2004, China and South Korea have carried out unofficial research on bilateral FTA signing. Up to now, it has been 6 years, and in May this year, the summit of China, Japan and Korea, held in Jeju Island, South Korea, confirmed that China, Japan and South Korea will complete the feasibility assessment report of FTA (China-Japan-Korea FTA, CJKFTA) in China, Japan and South Korea by 2012.


    According to the relevant studies of the Institute of Asia Pacific Research, the Chinese Academy of Social Sciences said that China and South Korea used to be bilateral.

    Discussion

    The main reason for the arrest is that South Korea is worried that the signing of FTA will be rejected by its domestic agricultural groups.

    On the one hand, in addition to the considerable political influence of agricultural groups in Korea, on the other hand, it is concerned that China and South Korea are threatened by China's cheap agricultural products after the signing of FTA.


    However, according to Japan's Nomura international securities analysis, ECFA will promote a large number of products such as electronic technology products and chemical products produced in Taiwan to enter the Chinese market. This will surely threaten the Korean exporters who rely on the Chinese market. Therefore, ECFA has also promoted the progress of South Korea's FTA negotiations.

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