A Study On The Feasibility And Strategy Of Constructing The Free Trade Area Of The Main Members Of The Shanghai Cooperation Organization

At present,China has joined dozens of regional economic integration organizations,which have the greatest impact on China and the world is The Asia-Pacific Economic Cooperation(APEC)and Shanghai Cooperation Organization(SCO).The SCO was formally established in 2001,the initial members are China,Russia and four Central Asian countries,in 2003,to further adapt to the development of the word,Chinese proposed to build the SCO FTA,in 2015,India,Pakistan officially joined the SCO,inject fresh blood and vitality for it.After more than ten years of planning and development,the SCO has made gratifying achievements in the field of security,economic and trade and cultural exchanges,to provide economic and cultural foundation for the construction of the SCO FTA.In this context,this paper focuses on the feasibility of establishing the SCO Free Trade Area and the strategic approach to establish the FTA.In this paper,the literature analysis method and the inductive method are analyzed and studied,and combining qualitative analysis with quantitative analysis.Collect and sort out the relevant information and make a preliminary conclusion,then according to these preliminary conclusions start to summarize,analysis the problems and favorable conditions of building the SCO FTA.According to the successful cases of other countries or regions' establishment of the FTA to summarize the strategic path for the establishment of the SCO FTA.Based on the collected data,this paper analyzes the history and current situation of economic and trade development between China and SCO member states,obtained the necessity and feasibility of establishing the SCO Free Trade Area.The necessity of the establishment of the SCO Free Trade Area has the following four points: Meet the needs of Member States for rational allocation of manpower and material resources;Economies of scale have enormous effects and further increase the labor productivity of member countries;Further reduce the production and circulation costs of economic and trade cooperation between Member States;To meet the needs of member countries to stabilize exchange rates and further prevent the financial crisis.In recent years,the economic and trade cooperation between the SCO member states frequently,are closely linked,the establishment of the SCO Free Trade Area hascertain feasibility,mainly the following reasons: members between the adjacent geographical;economic and trade cooperation between Member States is more closely linked;"The Belt and Road" on cooperation has injected new meaning and new vitality.But there are members of historical and cultural differences,countries in the trading system is not perfect and the diverging interests between countries,these factors have hindered the development of the FTA,the construction is still in the initial stage,members of the country's geographical borders?the economic and trade cooperation between countries has become increasingly close and the scale of economy and trade has continued to expand?The Belt and Road Initiative has injected the SCO new meaning and vitality,these factors provide favorable conditions and feasibility for the establishment of the SCO FTA.In the SCO and The Belt and Road Initiative overall framework,actively promote peace negotiations among Member States;respect for cultural differences,strengthen cultural output;further strengthen and improve the domestic and foreign trade system;developing regional economic cooperation,establishing special tariff zone and other ways to gradually build the SCO FTA to further expand the influence and promote the development of the SCO members better and faster.