Asian Powers Go For Tripartite FTA

by Mary Swire, Tax-News.com, Hong Kong

02 June 2010

Following a meeting between the South Korean President, Lee Myung-Bak, the Prime Minister of Japan, Yukio Hatoyama, and the Chinese Premier, Wen Jiabao, the three countries have agreed to accelerate their joint study into a trilateral free trade agreement (FTA).

The China, Japan and South Korea Economic and Trade Council of Ministers was formally launched in September 2002. Between then and 2009, research institutions within the three countries implemented a comprehensive and in-depth analysis of the feasibility of establishing the trilateral FTA.

As that analysis came to a positive conclusion - that the establishment of the FTA could eliminate trade barriers, expand the regional market and promote the economic integration of the three countries – a tripartite summit in October last year had already decided that a joint study of the FTA should be started in the first half of 2010.

A preparatory meeting between the three countries was then held in January this year to discuss the terms of reference and work plans involved, and, finally, the first round of the joint study was held last month.

The three leaders have now decided that all efforts should be made to complete that study into the FTA within two years. Following its completion, government-level negotiations may begin after the next official trilateral leaders' meeting of the three countries in 2012.

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