The Korea-China free trade pact, concluded on Monday after more than two years of negotiations, is expected to significantly boost the countries’ annual trade with China to $300 billion in 2015, according to the Ministry of Trade, Industry and Energy.
The number of items included in the Korea-China FTA is relatively small, compared to free trade deals with other major economies, but this FTA is set to have a great impact on both countries’ economic development.
The reason for the inclusion of smaller number of trade items is to protect each country’s vulnerable industries such as agriculture, according to a government official.
The overall bilateral trade volume was $228.9 billion in 2013, but Korea’s exports to China had shown a gradual decrease this year, standing at $114.1 billion.
Industry experts expect the Korea-China FTA to play a pivotal role in improving the Korean economy by boosting exports to the world’s second largest economy.
The agricultural industry is raising concerns of possible damage from the pact, while most of the manufacturing companies, which have been in fierce competition with one another in the Chinese market, are looking forward to new business opportunities.
