South Korea implements FTAs with China, New Zealand, Vietnam

SEOUL – Free Trade Agreements between South Korea and China, South Korea and New Zealand, and South Korea and Vietnam have formally come into effect from December 20. All three FTAs reduce tariffs in phases over long periods – in the case of China, over 20 years, with New Zealand and Vietnam, over 15 years.

The Korea-New Zealand FTA saw tariffs on some goods reduced on December 20 with a further reduction from January 1. Bilateral trade between the two countries has increased by 10.4% over the past five years to around KRW3.3 trillion.

A South Korean trade official said the FTA with China is expected to reduce tariffs on Korean exports by US$8.7 billion annually, bringing gradual tariff elimination over the next 10 years worth some US$45.8 billion.

The official said that as the trade deal comes into effect, Korean industry will e able to branch out into China’s services sector – in areas such as legal services, engineering, environment evaluation and entertainment.

The Korea-Vietnam FTA will open Vietnam’s growing market to South Korea’s consumer electronics and cosmetics. South Korea will open its market for more Vietnamese exports of fishery products, garlic and tropical fruit. In the service sector, Vietnam has committed to further open its construction, landscaping, and equipment rental markets. (ATI).