S. Korea, China And Japan Hold Tripartite FTA Preparatory Meeting

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

02 February 2010

On January 26, in Seoul, there was a joint preparatory meeting between China, Japan and South Korea to discuss the terms of reference and work plans involved in a joint study on a future trilateral free trade agreement (FTA) between the countries.

The China, Japan and South Korea Economic and Trade Council of Ministers had been formally launched in September 2002 as an important trade and economic cooperation mechanism between the three countries. 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 decided that a university-industry-government joint study of the FTA should be started in the first half of 2010.

At the joint preparatory meeting, it has now been decided that the first round of the joint study should be held in Seoul in April this year.

For South Korea, an FTA with China and Japan would form part of its policy of negotiating such agreements with as many of its trading partners as possible, so that up to 50% of its trade could be subject to such arrangements by the end of 2010. It currently has FTAs, or similar agreements, with Chile, Singapore, India, the European Free Trade Association (Iceland, Norway, Switzerland and Liechtenstein) and the Association of Southeast Asian Nations, which have already been ratified.

It also has agreements with the European Union and the United States awaiting ratification, and is making an effort to conclude further FTAs this year with the Gulf Cooperation Council, Peru and Turkey.

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