Necessity, Feasibility And Path Of China-South Korea Free Trade Area

Nowadays, the regional economic integration has become one of the main trends of the world economic development. It will take quite a long time to build up a free trade zone in East Asia. Therefore, East Asian countries are now vigorously working on sub-regional or bilateral cooperation and free trade area establishment, which will become an essential process in East Asian regional economic cooperation and integration.China and South Korea to establish the Sino-South Korean free-trade zone to hold positively the manner. At present, already completed the folk cooperation research, the admitting pipe produces study the union research stage, had already held five joint conferences, has made some row progress. China and South Korea have also held six investment joint conference, the direct investment is promotes both countries trade relation the direct power, also provides the good foundation for the Sino-South Korean free-trade zone's establishment.As the bilateral trade scale expands and the economic and trade ties continues to deepening, China and South Korea are growingly dependent on mutual markets. Simultaneously, considered the China and South Korea trade relation the inherent question (trade deficit , investment environment , trade protectionism ) and the new change causes China and South Korea to establish the Sino-South Korean free-trade zone the necessity to strengthen day by day. China and South Korea have the complementarity foundation in the industrial structure, in mutually the direct investment as well as the trade structure, the Sino-South Korean free-trade zone's feasibility unceasingly is also strengthening.The full text divides into four parts. The first part has outlined the selected topic theory significance and the practical significance, has made the summary to the domestic and foreign scholars about this question research's related literature, introduced the establishment free-trade zone's rationale mainly includes the essential factor talent theory, the comparison superiority theory, in the Customs union theory, the industry the trade theory. Introduced briefly the paper structure arrangement, has induced this article place of innovation and insufficient.The second part introduced the Sino-South Korean free-trade zone establishment progress and the stage simply. Now was also in the official to produce study the union research stage, the folk research stage already completed, but has not completed to the official negotiations stage transition. By the end of 2009, the Sino-South Korean free-trade zone tube produced study the joint conference already to succeed holds five times, both sides in the Industry sector as well as the origin rule and the trade relief measures, the farming and forestry fishery, the trade in services as well as the investment and so on related question have exchanged the opinion thoroughly and have made the substantial progress. Both sides on the farming and forestry fishery, the manufacturing industry, the competition policy, the intellectual property rights, the government procurement, the zoology and botany examination quarantine (SPS), subjects and so on customs procedure, origin rule and economic cooperation have carried on the thorough discussion, the majority of contents achieve consistently, has made the positive progress.Meanwhile in the union memoir's farming and forestry fishery, Korean desert"guarantees the provision especially"with two items and the overall conclusion suggested that and so on subjects have carried on the thorough careful consultation and the discussion. In addition, until at the end in 2009, China and South Korea has held six Sino-South Korean investment joint conference, has provided the good foundation regarding the Sino-South Korean free-trade zone's establishment. on December 7, 2009, conducts"2009 Sino-South Korean technologies by the Chinese Department of commercial affairs and the South Korean Knowledge Ministry of economic affairs to demonstrate and the business conference"together holds in the South Korean Seoul. This conference also has certain promoter action regarding the Sino-South Korean free-trade zone's establishment.The third part, first separately progressed from East Asia regional economic cooperation's whole with East Asian region both sides analyzes from the trade agreement development angle has established the Sino-South Korean free-trade zone the objective request. With is in the Northeast Asia area China and South Korea, strengthens along with the East Asian region whole cooperation tendency promotes China and South Korea's cooperation to turn toward a closer direction inevitably to develop; Then the Han bilateral trade scale unceasingly expanded with China and South Korea the angle which deepened day by day to the market dependence analyzes has established the Sino-South Korean free-trade zone the request inevitably.Respectively provides the market to China and South Korea be opposite party, namely the China and South Korea bilateral trade carries on the analysis empirical analysis and the forecast separately regarding the both countries important degree, if South Korean GDP yearly rate in 5%, and the China and South Korea monetary exchange rate and the present maintains in the invariable situation, South Korea exports to China occupies the South Korean general exports the proportion when 2015 will surpass when 32%,2020 years to achieve about 40%, China will export to South Korea occupies the Chinese general exports the proportion not to have the great scope rise, when 2020 close 7%.The fourth part, based on the complementarity of both industrial structures, the facilitating characteristics of direct investment and the competitiveness & complementarity of both trade structures, explains the feasibility of establishing the Sino-South Korea free trade zone. In the Sino-South Korea trade structure, there are 250 categories of trade products, 144 of which shows complementary features and occupies 61.35% of the total trade; 47 of which shows competitive characteristics, and occupies 17.89%of the total trade; the rest 59 of which reflects no obvious complementarity and competitiveness and accounts for 20.76% of the total trade. Among them, the complementary products are mainly primary and labor-intensive products; the competitive trade products are mainly capital-intensive machinery and transport facilities as well as some labor-intensive products made by sub-products of raw materials.The fifth part according to China and South Korea the import tariff level which must realize finally as the WTO member nation is the basis, differentiates China and South Korea sensitive and the non-sensitive industry.