Foreign and Military Affairs

China, South Korea to kick off FTA talks

By Zhang Jin (chinadaily.com.cn)
Updated: 2010-05-28 19:42

Seoul –China and the Republic of Korea (ROK), two of Asia’s largest economies, are expected to kick off formal talks on establishing a free trade area (FTA) this year or in the first half of next year to boost trade ties and regional integration, Premier Wen Jiabao said on Friday.

Wen met ROK President Lee Myung-bak in Seoul, the first stop in the premier’s weeklong Asia tour, which will also take him to Japan, Mongolia and Myanmar.

China, Asia’s second-largest economy, and ROK, the fourth largest, have finished a joint feasibility study of FTA. They began in 2007 and consulted with government officials, business people and scholars, according to a statement from the Chinese Foreign Ministry.

“The FTA will be a boon to regional economies,” said Fan Ying, an economics professor, who believed the move is the latest sign of the integration of East Asia.

But she warned the talks could take years and face difficulties.

“Agriculture could be a focus of the negotiations, as South Korea is keen to protect its farming industry,” she said.

Trade between China and South Korea was $156.2 billion last year, dropping 16 percent year-on-year.

But in first quarter of this year bilateral trade rose more than 50 percent to hit $47.6 billion as both economies recovered from the global financial crisis.

During a meeting between Chinese and South Korean trade officials in October last year, both nations hoped trade could hit $200 billion in 2010 and $300 billion in 2015.