China-Japan-South Korea FTA Trade Potential And Development Countermeasures

As the world economic globalization and regional economic integration accelerates, free trade area on the basis of regional free trade agreements experienced rapid development. European countries finally gradually built of the European Union which covering economic political and military cooperation, from the earliest European coal and steel community. This is the first regional integration organizations in the world which is composed of similar level of development countries and successful functioning. In the late20th century, with the dominant of the United States, the United States, Canada and Mexico set up the north American free trade area after negotiations,. North American free trade area was built in1994, and had successfully functioned for more than20years. It has made a great contribution for each member of the trade and economic growth. As a developing country, Mexico, with the United States and Canada, is successfully realized resource complementarily and common development, the comprehensive economic strength and the improvement of people’s life to certain degree. It is fully proved that successful regional economic integration can be built between developed countries and developing countries; Asian free trade area is put forward in1992, after10years of building, the original six Asian countries’ official launch the free trade zone in2002, and other new members had also speeded up the tariff cuts. This is the first free trade area between developing countries, after years of operation, the system gradually perfected, for each member of the economic development has played a considerable role in promoting.As important countries in northeast Asia, China, Japan and South Korea have good relations of cooperation in trade and investment. However, there is not any regional economic cooperation arrangement between the three economies With the rapid development of the economic globalization and regional economic integration nowadays, it is imperative to establish free trade area between the three countries.However, negotiations progress to free trade agreement has been slow, due to the different stages of development and produces the huge economic, political and social gap between China, South Korea and Japan. So, China, Japan and South Korea free trade area should be built up smoothly for a long period of time,and it becomes one of the important subjects of the three officials and scholars.Based on above background, several problems of the China-Japan-South Korea free trade area are discussed in this paper.First of all, this article discusses the three economic and trade complementarities and tightness, emphatically from South Korea and Japan trade relations perspective, and puts forward the problems existing in the process of China, Japan and South Korea to establish FTA. Then find out the influence of FTA on their country’s trade flow increase and on this basis discusses the feasibility of the three countries FTA. Finally, this paper puts forward the problem that what measures should be taken to promote the China-Japan-Korea FTA.This article is divided into five chapters.The first chapter is the introduction part, mainly about the topic background, significance, research present situation, the basic theory of FTA scholars at home and abroad, thesis research framework and method of research, and gives brief explanation of innovation and inadequate points of this article.The second chapter is the basic theory and concept. It mainly discusses the theoretical perspectives involved in this paper, including the generation and development of regional economic integration, the economic effect of regional economic integration, as well as the principle and development of the trade gravity model, etc.The third chapter is the analysis of the trade relationship between China, Japan and South Korea, this chapter summed up the basic situation of China, Japan and South Korea trade pattern, after analyzing the present situation of the trade, economic complementarily, and cost the aspects of changing the way of trade. It use tools such as trade integration index, trade competitiveness index, combining with the2000after the relevant classification and calculation of the original data in detail. This chapter also summarizes the C-J-K FTA in the process of establishing the problems they are facing.The fourth chapter is about the gravity model of trade effect prediction. This chapter mainly established the trade gravity model with the data of the economy of China and its major trading partners, and selected2005-2012panel data regression analysis, to verify the factors influencing the flow of trade between the two countries, and gave economics explanation of the results. According to the regression results, combining with the relevant data of2012, trade flow after the establishment of a free trade area can be simulated, which can be directly observed in The C-J-K FTA after the establishment of trade effect. Thus we can demonstrate the trade potential of C-J-K FTA.The fifth chapter is an obstacle to trade cooperation and countermeasures, paths are suggested, Main description of present China, South Korea and Japan between all the factors that hinder trade cooperation, and aims at these obstacles put forward countermeasures accordingly. Finally, this chapter gives the China-Japan-Korea FTA path of trade cooperation Suggestions.The conclusion part, chapter6, summarizes this article analysis method and train of thought, and the final conclusion.