The Study On The Focus Topics Of China-ROK FTA Negotiations

FTA has become the most important form of economic integration and cooperation in the world. The voice of establishing China-ROK FTA has been high for a long time. China-ROK FTA negotiations started in May 2012, and in February 2015 signed the FTA text protocol, which marks the substantive ending of FTA negotiations. In this paper, taken China-ROK FTA negotiations as a background, select the more attention topics services trade and agricultural products trade of China-ROK FTA negotiations for the study of China-ROK FTA tariff reduction mode.By simulating the form of tariff reduction to compare the economic effects of Sino-Korea FTA combined with the before analysis in this two aspects trade in agricultural products and services, then make recommendations on how to deal with non-tariff barriers to trade China and South Korea FTA may exist in other issues.ROK bilateral agricultural trade has always been sensitive topic. China is a large agricultural country, South Korea’s imports from China in the proportion of agricultural products has remained above 80%, due to the degree of dependence on foreign agricultural products in Korea and internal have a high degree of protection such as tariff and non-tariff barriers to prevent China’s agricultural exports to Korea, even many other barriers. China is South Korea’s largest importer of agricultural products, but South Korea is not China’s largest exporter of agricultural products in the bilateral trade of agricultural products and China is long time in surplus. As to trade services, both China and South Korea are not high the level development of it. Their trade service departmental structures are mainly in transport, tourism, construction, business services and other traditional service-based industries; the level of South Korea’s emerging financial and insurance service trade higher than China But China’s overall growth rate is higher than the service sector in Korea, service trade structure between the two countries emerged as new industries rising proportion of the total proportion and traditional industry continues to decline, the structure of bilateral trade in services are in a constant state of optimization.Based on the development status and trade structure analysis of bilateral trade in agricultural products and services, China and South Korea has great room for cooperation in the field of agricultural trade in services in the future. Learned that China plays in world trade of agricultural comparative advantage, while there are obvious complementarities between China and Korea in the field of trade of agricultural products covered by more than 75% of the goods index analysis. the overall level of trade in services in the industry compared with the bilateral trade is low, but in communications, transportation industry is shifting from inter-industry trade to intra-industry trade trend, The free trade area China and South Korea to establish can provide a good space and environment for bilateral trade in goods and trade in services and opportunities for cooperation. China ROK FTA negotiations based on the balance of interests, allow appropriate protection principles of their respective sensitive industries, the spirit of the China Korea FTA completed a comprehensive, high level of FTA negotiations with the target through 2015 November 10the end of two years of substantive negotiations.China-ROK FTA agreement to cancel all tariffs except agricultural industry for more than 90% of individual products, using the global trade analysis model (GTAP) to establish 17 industrial sectors in six countries (17 X 6 GTAP) FTA model.Under this policy effects predicted the effect of Sino-Korea FTA. The model run after the formal operation of China-ROK FTA on the condition that excepting in these three sectors:rice, vegetables and fishing other case completely abolished tariffs on goods. Seen from China and South Korea trade of agricultural commodity structure, the result of simulating the model show that the ratio of South Korea’s food crops and meat imported from China counts the largest proportion changes. The regional structure of imports of agricultural products in South Korea showed the proportion of the overall decline in imports from other countries and regions in the world, a significant increase of imports from China; South Korea bilateral trade in services affected by this policy change small compared with agricultural product trade, in South Korea-china bilateral trade of services exports, China’s exports to South Korea increased significantly lower than the ratio of Korea’s exports to China increased ratio.South Korea FTA protocol in the second half of 2015 is expected to come into effect, Chinese enterprises should make good use of the China ROK FTA market and fair competition mechanism, give full play to creativity and entrepreneurial spirit, to win more market share in South korea.