South Korea Ratifies Free Trade Agreement With China; Bilateral Trade ‘Anticipated To Play A Pivotal Role That Will Affect Asia And The Whole World’
South Korea's National Assembly ratified the country's free trade agreement (FTA) with China on Nov. 30. Yonhap News Agency reported that the bilateral trade passed by a majority of 196-33 votes, while 36 abstained.
Reports have revealed that the authorization still needs the ratification of China before it can be implemented.
The pact was signed by South Korea and China on June 1 after three years of discussions.
A researcher at the Korea Institute for International Economic Policy (KIEP) said the bilateral free trade agreement between the two countries is forecasted to help increase regional economic integration.
"The (South) Korea-China FTA is a good starting point that leads to negotiations of the trilateral FTA between South Korea, China and Japan as well as of the RECP (Regional Comprehensive Economic Partnership)," said Kim Young Gui, as noted by XinhuaNet Monday.
Han Jae Jin, a researcher at Hyundai Research Institute, said: "The (South) Korea-China free trade agreement is now about a bilateral trade, but is anticipated to play a pivotal role that will affect Asia and the whole world."
Meanwhile, Channel News Asia forecasted Monday that the approval came after the South Korean government vowed to supply about one trillion won in aid for farmers and fishermen who think that the trade deal will be affect their living.
Another researcher at KIEP said the bilateral free trade agreement will be the first of its kind in Northeast Asia, hence, the trade has a "significant meaning".
Further reports have revealed that the implementation of the FTA with China will enlarge the trade territory of South Korea. Aside from that, the trade is forecasted to increase the yearly bilateral trade of the two countries to over $300 billion.
The deal is expected to increase the gross domestic product (GDP) of South Korea by 0.96 percent after a decade of its implementation.
