Research On The Trade Effect Of China-korea Free Trade Area (FTA)

In order to adapt to the trend of economic globalization and regional economic integration,China has actively carried out regional economic cooperation and established trade relations with other countries.Since the signing of the first free trade agreement between China and Chile in 2005,China has entered into a free trade agreement with its neighboring countries and regarded it as an important means to promote trade liberalization.Up to now,China has signed 14 free trade agreements,including the implementation of the 12 free trade agreements,involving 22 countries and regions,trade partners throughout Asia,Latin America,Oceania,Europe and other regions.Among them,China-Korea FTA is the one involving in the most comprehensive range and the largest country’s trade.China-Korea FTA negotiations officially launched in May 2012.On June 1st,2015,the two governments formally signed the "Free Trade Agreement between China and South Korea".In the same year on December 20 th,it entered into force,and provided a transitional period of 20 years.China and South Korea are important trade partners for each other and have close trade relations.China-Korea FTA will have an important impact on bilateral trade.Study the trade effects can help the two countries make full use of the opportunities brought by the establishment of a free trade area,find issues of China bilateral trade,and provide policy recommendations to achieve the win-win situation between the two countries.This paper first reviews the relevant theories of international trade and regional economic integration,summarizes the research on this aspect of the domestic and foreign scholars,hackles the process of China-Korea FTA and expatiates its significance to China and South Korea.Secondly,by means of quantitative analysis,it analyzes the current situation of bilateral trade between China and South Korea,and studys the specific impact of China-Korea FTA on import and export trade between China and South Korea using the empirical analysis method.Finally,it summarizes the research above,comes to conclusions,and make policy recommendations to take advantage of the opportunities brought by China-Korea FTA,effectively deal with China and South Korea trade issues,and promote the development of bilateral trade.The conclusions of this paper are:China and South Korea trade closely with the level of intra-industry trade continuously improved,and the two parties are both complementary and competitive in international trade.China-Korea FTA plays a significant role in promoting the bilateral trade between the two countries.It will change the trade and industrial structure ofthe two countries and is conducive to promote the development of their FTA strategy.Policy recommendations are: actively play the comparative advantages and expand the export growth space;encourage technological progress,and accelerate industrial upgrading;vigorously develop intra-industry trade between China and South Korea,and change the pattern of division of labor;improve the supporting measures to facilitate bilateral trade;establish a dispute settlement mechanism to ensure stable development of the FTA.