China and South Korea's new trade pact will slash tariffs by 90% over 20 years, enhancing bilateral trade and economic ties.
China and South Korea have signed a free trade agreement that will cut tariffs by 90 percent over the next 20 years, reported Bangkok's AsiaNews.
The accord, finalized after talks that began in 2012, will remove tariffs on 71 percent of South Korean exports to China within 10 years and 91 percent in 20 years. In turn, Seoul will eliminate tariffs on 79 percent of Chinese imports in 10 years and 92 percent in 20 years.
South Korean President Park Geun-Hye hailed the deal as a 'historic milestone' in a letter to Chinese President Xi Jinping, stating that it would elevate bilateral ties to a new level. The agreement was signed in Seoul by Trade Minister Gao Hucheng and his South Korean counterpart.
China is South Korea's largest trading partner and top export market. Two-way trade reached US$235.3 billion in 2014, while South Korea invested $1.6 billion in China in the first quarter of 2015, overtaking Japan as the biggest foreign investor.
Seoul's Trade Ministry stated that the pact would create more than 50,000 jobs and boost exports of consumer goods such as fashion, cosmetics, home appliances, and high-end food products.
The deal excludes many of South Korea's key farming and fisheries products, reflecting concerns among farmers about cheap Chinese imports. Parliamentary approval is still required before the agreement takes effect.
