Mumbai: China and South Korea are exploring ways
of establishing a free-trade area (FTA). The two countries
will start deliberations at the official level early
next year. The agreement was reached at a meeting between
China''s minister of commerce Bo Xilai and his South
Korean counterpart Kim Hyun Chong.
Korea is China''s sixth largest trading partner, while
China is South Korea''s largest trading partner. Bilateral
trade stood at $111.9 billion in 2005. South Korea is
also China''s fourth largest source of foreign investment,
having invested $33.6 billion in the country till September
is currently holding FTA talks with Singapore, Australia,
New Zealand and Pakistan as well as the Association
of Southeast Asian Nations (ASEAN).
feasibility study will analyse macro-economic implications
FTA for the two economies, as well as the impact of
trade liberalisation on industries, the arrangements
for sensitive products and industries, among others.