Free trade zone for China, S.Korea, Japan to produce hefty benefits, thorough exploration needed

While regional integration removes the barriers between neighboring countries, free trade is the condensation of economic dependence between web potential benefits.

After completing the third round of the tripartite summit on Sunday on the island of Jeju, South Korea, the leaders of China, South Korea and Japan agreed on a joint research project in 2012 on the feasibility of a full grouping of the three A nation free trade area.

For a list of the advantages of a zone free of the countries involved in trade are obliged to eliminate tariffs and quotas, so that faster flow of goods, lower manufacturing costs and product prices.

In addition, a free trade area could also facilitate the free movement of human resources, capital and services and promote an environment conducive to investment and thus strengthening the communication policy.

As people move to the other concerns of the international financial crisis to overcome, and before taking a possible second in the turmoil of the debt crisis in the euro area, the regional economic bloc is gaining ground.

In these circumstances, China and the ASEAN Free Trade Area, the world’s largest of its kind, came after the birth of the first day of the year. It has 1.9 million inhabitants, six billion U.S. dollars in terms of GDP and 450 million U.S. dollars in trade.

The movement also been proposed FTA are in Russia and Latin America.

Russia is on track to build a free trade area for members of the front of the CIS, while the community of Latin America and the Caribbean are in the pipeline.

According to the Chinese Ministry of Commerce, the number of free trade zones worldwide will grow to around 400 in late 2010.

However, the idea of an economic bloc among the three economic powers in Northeast Asia is still preliminary and requires adequate consultation.

When grouped together, it would be in Asia, first, second and fourth largest economies, and 70 percent of GDP in Asia and 20 percent said the world was next only to the European Union and NAFTA.

With China as the largest trading partner of South Korea and the second Japanese bilateral trade between the three nations, estimated that about U.S. $ 200 million, is a catalyst for the development of free zone trade.

Meanwhile, studies of non-governmental groups in the three countries on two conclusions: First, could promote a free trade area growth, and secondly, a trilateral free trade agreement would settle into a team overcome any economic benefit both countries of the three.

Moreover, China’s competitiveness could be natural resources-intensive industries and labor, the South Korean and Japanese opposition to the capital and technology industries, the basis for the formation of the economic cycle .

However, the shortcomings of the free trade zones should not be neglected.

Once a free trade area, China has an impact on some industries, the economic and social costs to be paid to consider liberalization in sectors such as agriculture.

At present, proceed with the creation of a trilateral free trade area has a long way. Along the way, not only a thorough investigation is necessary, but also a practical approach to promoting the process.

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About zy833
i come from china

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