June 09, 2011Korea, China to hold economic talks
Korea and China will hold high-level talks next week to discuss a variety of economic and trade issues, including possible free trade talks, Seoul’s Ministry of Foreign Affairs and Trade reported yesterday.
During the one-day meeting on June 15 on Jeju Island, both sides will discuss ways to cooperate on renewable energy and resource development.
The two countries are also expected to discuss how to create an environment conducive to their bilateral free trade deal, according to officials at the ministry.
In April this year, top trade officials from Korea and China agreed to create conditions for progress on a bilateral free trade deal.
In May last year, the two countries completed a nearly four-year joint feasibility study on a possible bilateral free trade agreement (FTA) and reached an agreement to exchange their views on sensitive issues that arose.
A free trade deal with China would help Korea expand its gross domestic product (GDP) by nearly 3 percent as reduced trade barriers would boost exports to the fast-growing market, a report showed earlier.
According to the report compiled by the Samsung Economic Research Institute, Korea’s GDP is expected to grow 2.72 percent more if Seoul and Beijing complete an FTA intended to cut or remove tariff barriers between the two countries.
In Korea, there are growing calls for an FTA with Beijing as a similar trade deal between China and Taiwan has recently taken effect.
Korean President Lee Myung-bak said last year that Seoul needs to consider an FTA with Beijing in order to keep up with other nations that have been adjusting to trade conditions stemming from China’s rapid rise in the global economy.
China is the largest buyer of Korean-made goods and has contributed to Seoul’s sizable trade surplus in recent years, while Korea is China’s third-largest trading partner after the United States and Japan.
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