The china-rok fta will be signed on June 1 and is expected to come into effect by the end of this year, according to CCTV business report. After the china-rok fta came into force, more than 90% of products from both sides entered the zero-tariff era after the transition period.
It is understood that China and South Korea fta window, this is by far China's foreign signed free-trade agreements involving national biggest trading, is also China has so far been involved in most areas of the fta. The china-rok free trade agreement has 22 chapters covering 17 areas, covering not only trade in goods but also services and investment.
The agreement covers 17 areas of goods, service trade and investment rules
As early as May 26, the first financial (weibo) daily reported that south Korean President park geun-hye had deliberated and adopted the FTA (FTA) on the same day.
The agreement includes a total of 310 items, including products from the kaesong industrial park, which are eligible for south Korean origin, which can be offered immediately after the FTA has entered into force. China will achieve zero tariffs on 91 percent of its goods in 20 years, 85 percent of its imports and 91 percent of its imports from South Korea. The agreement covers 17 areas of trade in goods, services, investment and rules, including e-commerce, competition policy, government procurement and environment, and other "21st century economic and trade issues".
According to the Hong Kong media, China and South Korea FTA agreement also covers the environment, telecommunications, finance, e-commerce, Internet of things, co-production of film and television industry, government procurement cooperation, investment liberalization and other aspects.
Agreement for the first time in fta negotiations involving the content of the electronic commerce and local cooperation, also is the first time to set up the financial services, telecommunications service separate chapters, the content is in addition to Hong Kong, Macao and Taiwan, China and other countries or regions before signing the fta of all have no.
According to a financial disclosure agreement, the agreement will put weihai and incheon free economic zone as a demonstration zone for local economic cooperation and write agreements. This will provide the new area of the south China sea in weihai in China and South Korea free trade area within the framework of the historic opportunity of cooperation to strengthen opening to the outside world, China and South Korea in cross-border e-commerce, tourism, health care, modern logistics, and other fields to try first.
Two-way trade between China and South Korea has reached us $300 billion. The establishment of china-south Korea free trade area will greatly stimulate bilateral trade, and experts predict that trade will exceed $400 billion in five years.
Such stocks as cosmetics, coastal ports, land transportation and air transport are expected to benefit
The signing of the free trade area tends to drive the capital market boom pursuit, several brokerages and media predicted that the china-south Korea FTA agreement signed, to trade, shipping, tourism and other fields between China and South Korea injected strong vitality, cosmetics, coastal ports, land transport, air transport, commercial trade and other industries related stocks are expected to benefit.
CCTV's financial reports, cosmetics sector related company's share price has been rose 50% on average, this is because as the free trade agreement signed and take effect, 6.5% - 6.5% of the south Korean cosmetics import tariffs will be phased out, the final sales price is expected to reduce nearly 20%, investors are very bullish on the competitiveness of the south Korean cosmetics. Apart from the cosmetic plate, tourism, aviation and transport sectors are also stimulated by the FTA of China and South Korea.
Huatai securities recommends focusing on four categories of stocks, including ports, shipping, textiles and agricultural products. Specifically, the establishment of china-south Korea fta will benefit the port and maritime industry first.
The logic is: on the one hand, the free trade agreement took effect, trade scale is expected to rise significantly, at the same time, China and South Korea most of goods trade is given priority to with the shipping, resulting in the port throughput and increase of volume of goods by sea; China and South Korea free trade agreement, on the other hand, large probability will include customs clearance facilitation and quarantine preferential policies, such as negative lists the reciprocal policy will greatly save the time cost of port and shipping. Recommendations focus on the northern area important port operating companies and shipping companies, such as dalian, tianjin, lianyungang port and the bohai sea ferry company, tianjin shipping, cosco, China shipping freight and shipping companies.
China and South Korea launched FTA negotiations in May 2012. In November 2014, the two leaders jointly announced the conclusion of substantive negotiations in Beijing, and the two countries signed an English agreement in February 2015. On February 25, China's ministry of commerce announced that China and the rok have completed the initiations of the whole text of china-rok free trade agreement and confirmed the contents of the agreement. The cabinet approved a free trade agreement with China, three months after China and South Korea signed a free-trade agreement.
Translated from the national logistics information http://news.56888.net/2015913/7620169690.html