China South Korea FTA Formal Signature To Help Textile Industry Development

In June 1st, Gao Hucheng, Minister of Commerce and Minister of industry and Commerce resources of People's Republic of China, formally signed the free trade agreement between the government of the People's Republic of China and the government of the Republic of China on behalf of the two governments.

The FTA between China and South Korea is the most widely covered FTA signed by China so far, and the largest trade volume involving countries. It is a mutually beneficial and win-win agreement for China and South Korea, and has achieved the goal of "balancing interests comprehensively, comprehensively and at a high level".

According to the agreement, the liberalization rate of trade in goods is more than 90% of tax and 85% of trade volume in terms of opening level.

The agreement covers 17 fields, including trade in goods, trade in services, investment and rules, including e-commerce, competition policy, government procurement, environment and other "twenty-first Century economic and trade issues".

At the same time, the two sides promised to continue the negotiations on service trade with negative list mode after the signing of the agreement, and to carry out investment negotiations based on the national treatment before admission and the negative list mode.

Huatai Securities Research Report believes that the establishment of China South Korea Free Trade Zone will benefit the port and maritime industry first.

On the one hand, the scale of trade between the two countries is expected to increase significantly after the Sino Korean FTA comes into effect, and the two countries' trade in goods is mainly maritime, thus bringing about a corresponding increase in port throughput and cargo pportation on the sea. On the other hand, the China South Korea free trade agreement will include preferential policies such as customs clearance and quarantine negative list, which will significantly save the time cost of port and maritime links.

After the formal signing of the Sino Korean FTA, South Korea's tariffs on imports of Chinese textiles and agricultural products will be significantly reduced, thus contributing to our country.

And agricultural products trading companies have gained more from South Korea in the face of shrinking demand in Europe and Japan.

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According to statistics from the General Administration of Customs of China, the total value of China's imports and exports to Korea amounted to about 537 billion 420 million yuan in 1-4 months, of which 198 billion 120 million yuan was exported and 339 billion 300 million yuan was imported.

According to the foreign trade data released by the Ministry of Commerce, according to the statistics of Korea customs, the bilateral trade volume between Korea and China was 1-3 US dollars in the month of 56 billion 240 million, an increase of 1.7%.

Among them, South Korea exported 33 billion 900 million US dollars to China, down 1.5%, and imports from China 22 billion 340 million US dollars, an increase of 7.1%.

South Korea's trade surplus was 11 billion 550 million US dollars, down 14.8%.

China is Korea's largest trading partner, the largest export destination and the largest source of imports.

Electromechanical products, optical medical equipment and chemical products are the main products of South Korea's exports to China.

South Korea's top three imports from China are electromechanical products, base metals and products, and chemical products.

China continues to maintain its advantages in such labour intensive products as textiles and raw materials, furniture and toys.

According to Xinhua news agency,

It is widely believed that the "east side" approach will provide new opportunities for exchanges between China and South Korea in all fields.

Korean experts believe that the strategy of "one belt and one road" will help Korea expand its economic cooperation with the countries along the belt and road.

The FTA will provide a template for the construction of the free trade area along the "one belt and one road".