CHINA-ROK AND CHINA-AUSTRALIA FREE TRADE AGREEMENTS HAVE COME INTO FORCE
China-south Korea and china-australia free trade agreements came into force on December 20.
South Korea and Australia are both important trading partners of China. The establishment of the two free trade zones will give a huge impetus to China’s foreign economic and trade relations and even the deep economic and trade integration in the asia-pacific region
The china-rok free trade agreement (fta) is the largest fta China has ever signed with other countries, covering the widest range of issues.It is widely believed in the rok that the agreement will inject vitality into bilateral economic and trade development, bring tangible benefits to enterprises and individuals of the two countries, and exert a positive impact on the economic development of Asia and the world at large.
It is reported that the first step of the china-south Korea free trade agreement (fta) was tax reduction on December 20, 2015, and the second step was tax reduction on January 1, 2016.
In the longest period of 20 years, China’s zero-tariff products will account for 91% of the tariff items and 85% of the import volume, while South Korea’s zero-tariff products will account for 92% of the tariff items and 91% of the import volume.
According to the yonhap report, the china-south Korea fta is expected to boost South Korea’s gross domestic product by 0.96 percent over the next 10 years.In addition, better business opportunities will create lots of jobs and bring huge benefits to consumers
As the china-south Korea free trade agreement takes effect, Chinese consumers will be able to buy better and cheaper Korean goods, have access to plastic surgery services without having to go abroad, travel to South Korea more easily and have access to authentic kimchi, analysts said.And inexpensive “made in China” will also enter the daily life of the Korean people.
In addition, Korea’s cosmetics, entertainment and other industries will also usher in significant benefits.
The china-australia fta covers more than a dozen areas, including goods, services and investment, achieving the goal of “comprehensive, high quality and balanced interests”.
According to the agreement, 85.4% of each side’s exports will be tariff-free immediately after the agreement comes into force.
After the transition period of tax reduction, the proportion of tariff items and trade volume in Australia that finally achieve zero tariff will reach 100%.China’s tariff-free tariff items and trade will account for 96.8 percent and 97 percent respectively.
In the service sector, Australia has pledged to open its service sector to China on a negative list since the agreement came into force, becoming the first country in the world to make a service trade commitment to China on a negative list.China has opened its service sector to Australia in a positive list.
In the field of investment, the two sides shall grant MFN treatment to each other since the entry into force of the agreement.Australia will lower the threshold for Chinese companies to invest in Australia and make facilitation arrangements.
Experts believe that the china-australia free trade agreement will bring tangible benefits to Australian exporters and enhance the competitiveness of Australian companies and products in China.Australian consumers will benefit from buying Chinese electronics, clothing, household goods and other goods.