The Influence And Counter Plan Of The China-ASEAN FTA On The Exports Of Korea

Free Trade Agreement (FTA) between China and ASEAN, which is critical to the exports reduction of Korea to these two regions, is scheduled to become effective from July 2005. In order to find out the effectiveness of the China-ASEAN FTA(CAFTA) to the exports of Korea, this study has compared the share of international trade among China, ASEAN, and Korea in China-ASEAN market and has analyzed the most influenced rival items by comparing custom tariff corresponding to those items.This study has shown that the items classified according to the Normal Track for the CAFTA but the high custom tariff for the exports of Korea in China and ASEAN markets will greatly affect the exports of Korea to China and ASEAN. Korean government needs to pay attention to the abolition plan of tariff from these countries. The results of this study offer most valuable information to Korean traders who are about to export to China and ASEAN. As for the researchers who are planning to initiate FTA with these countries would also benefit from it.JEL classification : F741...