"Will the price of Korean goods fall?" "What trade should be done with South Korea?" After "China-Korea Free Trade Area" became a buzzword, ordinary people are very concerned about whether they can buy affordable Korean goods in the future, while entrepreneurs are more interested in the business opportunities that come with it. Experts believe that the prices of South Korean cell phones, TVs, cars and other goods are expected to fall in the future, and people can also buy cheaper South Korean cosmetics, clothing and other daily necessities.
The scope of the agreement covers 17 areas
The Ministry of Commerce website shows that, according to the results of the China-South Korea FTA negotiations, in terms of the level of openness, the two sides of the liberalization of trade in goods ratio of more than 90% of the tariff lines, 85% of the trade volume. The scope of the agreement covers trade in goods, trade in services, investment and rules *** 17 areas, including e-commerce, competition policy, government procurement, the environment and other "21st century economic and trade issues".
At the same time, the two sides promised to continue negotiations on trade in services in the mode of negative list after the signing of the agreement, and to carry out investment negotiations based on the mode of pre-access national treatment and negative list. The China-Korea FTA negotiations have achieved the goal of "a broad balance of interests, comprehensive and high level".
And the FTA is expected to help bilateral trade between the two countries exceed 300 billion U.S. dollars, up 39.5 percent from 215.1 billion U.S. dollars in 2012, according to South Korean media reports. The combined GDP of regions that have signed FTAs with South Korea will rise to 73 percent of global GDP from the current 61 percent.
Forming an $11 trillion *** same market
The China-Korea FTA negotiations were launched in May 2012.In November 2014, the heads of state of China and South Korea announced the conclusion of substantive negotiations in Beijing *** same. According to the Ministry of Commerce, this is China's FTA with the most comprehensive scope of areas and the largest country-specific trade volume to date.
The conclusion of the China-Korea FTA will be able to accelerate the competitiveness of Korean companies, especially Korean small and medium-sized enterprises (SMEs), to enter the Chinese market. According to the analysis, in the small and medium-sized enterprises, the gain of China-Korea FTA signed industry will mainly focus on medical equipment, clothing, small home appliances and other product areas.
Some forecasts point out that the China-Korea FTA is expected to contribute 1-2 percentage points to China's GDP growth, while South Korea's GDP will increase by 2-3 percent, by which time, what will be formed between China and South Korea will be a population of up to 1.35 billion people, GDP of up to 11 trillion U.S. dollars in **** the same market.
Home to buy Korean cosmetics will be cheaper
Korea Tourism Organization (Tourism Development Board) released the "2013 Korea Tourism Market Analysis" shows that Chinese tourists traveled to South Korea in 2013 reached 4.32 million people, and buy Korean cosmetics for the purpose of people traveling to South Korea preferred. Because the same brand of cosmetics, the price of South Korea and domestic comparison, can be described as a world of difference.
After the signing of the China-Korea FTA, more than 90 percent of the products of both sides after the transition period will be zero tariffs, including Korean cosmetics and clothing. For the Chinese people, it means that more Korean goods will enter the Chinese market, and the people can buy a wide range of Korean goods in China at prices not much different from those in Korea without going to South Korea.
China's agricultural exports will increase dramatically
"In China-Korea trade, South Korea imposes high tariffs on the import and export of agricultural products. With the launch of the China-Korea FTA, tariffs are gradually reduced, which will boost China's agricultural exports." Lin Guijun, vice president of the China University of International Business and Economics, said.
Qingdao international agricultural and sideline products trading logistics port related person in charge said, "local production of cabbage, ginger, onions, okra, as well as chili peppers, garlic are Japan and South Korea people like the agricultural products, before we are in the development of trade programs for Japan and South Korea. Now that the China-South Korea FTA negotiations are complete, we believe our exports of agricultural and sideline products to South Korea will increase greatly."
Shield this promotion content of the people have benefited, the Chinese and South Korean enterprises are "a few happy and a few sad". For Chinese enterprises, through the China-Korea FTA reached, you can sell more products with advantages to South Korea to expand their sales market. Among them, the relatively low price and competitive advantage of electronic products will enter the Korean market in force.
Chinese products with price advantages into the South Korean market, for the lack of competitiveness of South Korean small and medium-sized enterprises is a huge blow. However, for South Korean companies, the conclusion of the China-South Korea FTA means they are connected to the Chinese market, which has a population of 1.3 billion. South Korean stakeholders thus said that the economic territory of South Korea will become the third in the world.