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The Influence of the Implementation of U.S-Korea FTA on China’s Export Trade

Author: LiuNa
Tutor: SunYuHong
School: Dongbei University of Finance
Course: International Trade
Keywords: U.S. and Korea FTA Agriculture Textile Industry Competitiveness Trading Strategy
CLC: F752.62
Type: Master's thesis
Year: 2011
Downloads: 93
Quote: 0
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Abstract


Since the 1990s, the number of Regional Economic Integration which sets Free Trade Zone as target increases all over the world. Bilateral free trade agreements, which account for approximately 95% of Free Trade Zone, are the major component. And this becomes an increasingly worldwide universal economic phenomena. US-Korea Free Trade Agreement begins from Feb.2006 under the backgrounds that both situations of Asia-Pacific Economic Cooperation and US-Korea bilateral trade development are changing. After 14 months tough negotiations, US and Korea finally ends the significant and historical Free Trade negotiation process. They sign the FTA on Apr.2007. The agreement contains more than a dozen areas, such as agriculture, garment and textile industry, car industry. After the FTA has been signed by both sides, there also have lots of differences on sensitive issues. That leads to disagreement by both congresses. But, by implying FTA, both countries could gain significant benefits. After more than three years ups and downs, negotiators of both sides got to an agreement once again on 2010.12.06. Hillary Clinton, U.S. Secretary of State, promised firmly that U.S. congress would authorize US-Korea Free Trade Agreement before the end of this year when she visited Korea on 2011.04.16.US-Korea Free Trade Agreement is signed under the backgrounds that the trades decrease, trade relation becomes desolate and necessary of both strategy. On the other side, Chinese economic grows fast, influence on Asia-Pacific economic becomes strong, and China-Korea trade relation gets closer, all of these promote U.S. to sign FTA with Korea. During the negotiation, they adhered to their own positions on sensitive field like beef and car industry. But two countries strategy targets finally make it. Because it’s one best way for Korea to break Japanese superior technology, high productivity and Chinese low cost, rapid development of technology. Also, it’s one eventful step for U.S. to contain the rise of China, to enhance its influence in the Asia-Pacific region, and to consolidate the hegemony in the world. US-Korea FTA is expected not only to give a huge impact on both countries economies, but also on neighboring countries, even the world trade pattern. For U.S. and Korea, the signing of the FTA will expand bilateral trade, increase welfare, enhance the international competitiveness of both countries. For neighboring countries, it would have a negative impact on export to U.S. and Korea.Regardless U.S. and Korea, trades between China and them increase rapidly. They are important trading partners by each other. Agreements the U.S. and Korea agreed in FTA influences trade cooperation not only between China and Korea, but also China and U.S. This weakens China’s status on economic trade with U.S. and Korea. Further, this could also influence China’s export in short time, especially on export mainstay industries like agriculture and textile industry. This study bases on US-Korea Free Trade Agreement, in order to analyze the affects on Agro textile industry of U.S., Korea and China. Meanwhile, by using indexes like Trade Competitiveness Index, Export Similarity Index, Market Share and Comparative Advantage Index, this study analyze the_ Agro textile industry competitiveness of China, U.S. and Korea. Also, combine this sort of competitive and US-Korea FTA tariff concessions model to analyze influences on China Agro textile industry export. Accordingly, China should take up the challenge actively and take appropriate trade strategy to deal with.

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CLC: > Economic > Trade and Economic > States foreign trade > China's foreign trade > Import and Export Trade Overview > Export trade
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