Asia Trade Update (September–October 2014)

Keywords: Asia, trade update, FTA negotiations,

FTA DEVELOPMENTS

China-Korea FTA Negotiations

The leaders of China and Korea have strongly affirmed their intention to conclude the FTA by the end of 2014. However, negotiations have been difficult as there are differences of opinion over market access for agricultural and industrial products. The two parties have been unable to resolve their differences, and the hope of concluding the agreement by the end of the year appears remote.

Korea is requesting that China liberalise tariffs on petrochemical, machinery and steel products, while China is requesting that Korea open its market for agricultural products. Notably, Korea is pushing very hard for China to remove/eliminate import duties on petrochemical products from Korea. However, China is proposing to put petrochemical products under the Sensitive Track and Highly Sensitive Track. Given that China has recently been very active in initiating anti-dumping