Nascent China-South Korea FTA and financial agreements are expected to boost and channel growthCloser economic and financial ties between China and South Korea are expected to have a significant impact on the two countries and the Asia-Pacific as a whole.China and South Korea substantially concluded a free trade agreement in Beijing during the Asia-Pacific Economic Cooperation meeting in November. The two countries also signed a bilateral currency agreement during Chinese President Xi Jinping's visit to Seoul in July.The China-South Korea FTA negotiation, which was concluded after 12 rounds of negotiations over the past three years, significantly reduces barriers to bilateral trade, except for those on rice and motor vehicles. The FTA is pending legal and parliamentary reviews from the two countries early this year.China and South Korea achieved bilateral trade of $229 billion in 2013, compared with $6 billion in 1992, representing growth of over 36 fold. When completed, the China-Korea FTA will help foster a united market between the two countries with a combined total population of 1.35 billion and GDP of $11 trillion.This agreement covers 17 areas such as goods, services, e-commerce, government purchasing and investments.

 

From CHINA DAILY