China, South Korea free trade agreement promotes trade cooperation

China and the Republic of Korea (ROK) signed a free trade agreement in June.

Under the deal, tariffs on 90 percent of goods traded between the two countries will eventually be eliminated.

Expert expected the FTA to remove regulations like tariff barrier and trade quota on goods, mainly traded between the two countries, in order to expand bilateral trade.

CHUNG-IN MOON, Professor, Dept of Political Science, Yonsei University
“The Korea-China FTA will affect the bilateral trade positively and result in a trade volume expansion.”

South Korea expected the free trade accord with China to raise its real GDP by 0.95 percentage points and create 53,800 new jobs in the next 10 years.

Now, China is South Korea’s largest trading partner, while Seoul is Beijing’s third-biggest trade partner as a single country.

Trade volume between the two nations increased to 235.4 billion U.S. dollars in 2014.

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