S. Korea passes FTA with China
Print Edition
SOUTH Korea yesterday ratified a free trade agreement with China that would remove most tariffs between Asia’s largest and fourth-largest economies.
The ratification, which comes five months after the trade pact was signed, paves the way for the deal with South Korea’s largest export market to take effect this year. South Korea already has trade deals with the European Union and United States.
Lawmakers passed the deal after agreeing to spend 1.6 trillion won (US$1.4 billion) over the next decade on tax breaks and other aid for farmers and fishermen.
The main opposition party was against ratifying a deal as the agriculture and fishery industries feared greater competition from less expensive Chinese imports.
To further appease concerns about the deal’s impact, lawmakers agreed to seek donations to establish a 1 trillion won fund for the agriculture and fishing industries over the next decade.
Once put into effect, the deal would eliminate tariffs on US$42 billion of South Korea’s imports from China and on US$73 billion in South Korean exports to China. Eventually, it will remove tariffs on more than 90 percent of goods. Autos and rice remain protected.
South Korea’s government said the deal would create about 54,000 jobs over the next 10 years and bring other economic benefits, such as boosting sales of fashion items, cosmetics and electronics goods made by small and medium South Korean firms in the Chinese market.
South Korea has been struggling to boost exports, which sank 16 percent in October from a year earlier, the biggest drop in six years.
Earlier in November, Chinese Premier Li Keqiang and South Korean President Park Geun-hye agreed during their meeting in Seoul to work toward ratifying the deal by the end of the year.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
