S. Korea, China to hold preliminary talks on FTA

By Kim Young-gyo
HONG KONG, Sept. 6 (Yonhap) -- South Korea and China will hold preliminary talks
on a free trade agreement (FTA) between the two countries late this month in
Beijing, government officials said Monday.
The South Korean embassy in Beijing said the two sides have agreed to start talks
on Sept. 28 on the sensitive issues regarding the trade deal, before they launch
formal free trade negotiations.
The agreement was made last week when Lee Tae-ho, director of the FTA policy
bureau of the South Korean foreign ministry, met in Tokyo with Yu Jianhua,
director general of international trade and economic affairs of the Chinese
commerce ministry.
In May, the two countries completed a nearly four-year joint feasibility study on
an FTA and reached an agreement to exchange views on sensitive issues about it.
Experts have been urging the South Korean government to fully assess the impact
of an FTA with China, as it will have a great economic effect on the country.
China is the largest buyer of South Korean-made goods and has contributed to
Seoul's sizable trade surplus in recent years, while South Korea is China's
third-largest trading partner after the United States and Japan.
South Korea's agriculture and fisheries sector is expected to be dealt a serious
blow if South Korea and China sign the free trade deal.
According to the state-run Korea Institute for International Economic Policy,
South Korea's agricultural production will be reduced in 2020 to 20 percent of
the level of 2005 when it came to 35.1 trillion won (US$29.7 billion) under the
worst case scenario.
ygkim@yna.co.kr
(END)

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