The Free Trade Agreement Between South Korea And Canada Came Into Effect.

The free trade agreement between South Korea and Canada came into effect. The entry into force of the FTA made Korea the first Asian country to sign trade agreements with the world's eleventh largest economies.

The implementation of the free trade agreement between South Korea and Canada is positive for Korea (and Canada) because it will promote trade and economic growth. Trade liberalization and free market will further promote Korea's efficiency, innovation and competition.

Like other export oriented East Asian economies, the Korean economy has lost the positive impact of booming global trade, and the overall GDP growth has also been hit. The market access of the larger and more developed economies will bring some help to the Korean export industry.

Although the Ministry of industry and Commerce resources of Korea predicts that the FTA between Korea and Canada will only increase Korea's GDP by 0.04% in the next ten years, it is expected that the FTA will be bigger. Trade Openness will enable South Korea to deregulate, enhance competitiveness and innovation, thereby supporting the long-term growth prospects of Korea.

This agreement is a "high quality" agreement. In the next ten years, import tariffs on 97.5% of trade commodities between South Korea and Canada will be cut.

on The Republic of Korea Canada will cut import tariffs on 4.0%-6.1% in the next two years. The South Korean government expects it to occupy Canada's advantage over Japan and Europe. Korean exports to Canadian products accounted for over 40%.2013 years, and the total value of vehicles exported to Canada amounted to US $2 billion 230 million.

South Korea's textile industry will also benefit. According to the FTA, Canada will be relieved in the next two years. Spin Most of the import tariffs on products are currently 18%., so the Korean textile industry will benefit greatly.

South Korea's President Park Geun hye's trade policy focuses on maintaining this trend and hopes that South Korea will become the key to linking the East Asian and Pan Pacific markets through free trade agreements.

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"At present, the tariff of Chinese enterprises exporting to Australia is between 10% and 20%, and if the tariff is abolished within five years, China's textile enterprises will benefit directly from it." Jiang Hui, President of the China Textiles Import and Export Chamber of Commerce, told the first Financial Daily reporters.

Recently, the agreement on Sino Australian FTA has concluded that all tariffs on China's products will eventually be reduced to zero, while China's tariffs on most of Australia's products will eventually be reduced to zero.

The industry expects that China's long-term exports will far outweigh imports, such as textile and clothing, which will benefit from it.

It is reported that bilateral textile trade between China and Australia reached US $5 billion 40 million last year, of which China's exports to Australia amounted to US $5 billion, accounting for 99%.

"China's textile enterprises can be roughly divided into third party enterprises and factories and enterprises. Textile factories do not need to sell products to Australia like third party intermediaries, like the third party enterprises in foreign trade. Therefore, if Australian tariffs are reduced to zero in five years, such enterprises can directly benefit from the tax costs of 10% to 20%, and they can have more profits and greater competitive advantages." Jiang Hui told reporters.

After the signing of the agreement, the domestic dairy giant Erie and Mengniu have arranged for Australia. Jiang Hui said that domestic textile enterprises are unlikely to invest and set up factories in Australia on a large scale, mainly because Australia has no outstanding advantages in labor cost and consumer market.

Data show that China's textile and garment industry exported to US $about 280000000000 last year, but exports to Australia amounted to only US $5 billion, accounting for about 6% of the total export volume. Therefore, from the overall situation of the industry, the limited income will not have a particularly big impact.