The Basis, Obstacles And Countermeasures Of The Establishment Of China-Japan-Korea Free Trade Areas

With the rapid development of economic globalization since the latter half of 19th century, regional economic integration is one of the main tendency of world economic development. Today, as two trends of development of global economy, the economic globalization and regional economic integration is becoming an inevitable stream in the development process of global economy. Organization of regional economic integration with various types, such as Free Trade Zone, Tariff Union and Common Market, were established one after another in Europe, Africa, Oceania as well as the transcontinental countries and areas. East Asian areas take up an important position in the world economic territory. However, compared to EU and NAFTA, the economic integration course in East Asian areas gets behind greatly. One of the main reasons is that there has no significant talk between three countries (China, Japan and Korea) about economic integration, who are the synthesis national powers in East Asian areas. The design of the China-Japan-Korea free trade areas (CJKFTA) is very important.China, Japan and Korea have a kind of strong trade and investment relationship, and also have strong economic complementarity, so establishing FTA is feasible. In this thesis, by introducing the realistic basis and the expected proceeds of CJKFTA that are explained on two aspects---Traditional Benefits and Non-Traditional Benefits, we showed the feasibility and significance of establishing CJKFTA. However, there are still lots of obstacles that are hindering the establishment CJKFTA. Therefore, this study presented these obstacles subsequently, in which these obstacles were divided into economy factors, politics factors, social systems factors and outer influences. After showing the obstacles, this thesis researched the path of establishing CJKFTA. Finally, suggestions were provided with the hope to contribute to the establishment of CJKFTA.The full text is divided into five chapters:Chapter I: Introduction. It introduced the research background, purposes, the main content, the main methods and possible theory innovations. Also, it contained the concept of defining and literature review.Chapter II: The Theoretical Basis of Establishing CJKFTA. We analyzed the static and dynamic effect of the Tariff Union Theories. The static effects include trade creating effect and trade transferring effect; the dynamic effects include scale economy effect, competitive effect and investment effect etc. It also introduced the trade expanding effect. At the end, it discussed the effect of economic competition and complementarity on FTA.Chapter III: The Realistic Basis of Establishing CJKFTA and The Expected Proceeds. First, it analyzed the realistic basis of CJKFTA by analyzing the economic statuses of three countries, the close relations of trade and investment among these three countries, the economic complementarity of these three countries and so on. Second, it made predictions on the proceeds of CJKFTA. The discussions go into two aspects: Traditional Benefits and Non-Traditional Benefits.Chapter IV: The Obstacles of Establishing CJKFTA. These obstacles could be divided into economy factors, politics factors, social systems factors and outer influences.Chapter V: The Path of Establishing CJKFTA and Countermeasures on the Development of CJKFTA. The first part of this chapter researched the path of establishing CJKFTA; the second part concerns about the countermeasures on the development of CJKFTA.