A Study On The Feasibility Of An FTA Among China, Japan And Korea

Nowadays we step into economic globalization and regional integration eras. On one hand, with the strengthening roles of the WTO, the multilateral trading system all over the world is getting improved and powerful; on the other hand, regional economic cooperation is developing simultaneously in great scales. Judging by the up-rising number of RTAs, FTAs are getting more and more attention. With the development of EU and NAFTA, three important economies in east Asia—China, Japan and Korea altered the former indifferent attitudes and embarked on the agenda preparation for an FTA among China, Japan and Korea. With 23% of global population and great meanings to the world, regional cooperation among these three countries will bring big influence to Asia-Pacific region and the world as well.The foundations and conditions of three-country FTA have been studied in several areas including economics, politics and social cultures in this paper. The effects of FTA are analyzed through tables and models. The difficulties and barriers are included in research and with all methods mentioned above, the writer tried to give prospects for the FTA among three countries a clear and comprehensive analysis.There was a course of development from nongovernmental research spontaneously to governmental promotion in the terms of economic cooperation research among three countries. Prospects of wide economic development for each country, complementary advantages, and close economic relationship, increasing bilateral trade flows and upgrading cooperation willingness among China, Japan and Korea comprise the requirements of formation of an FTA among three countries. Complementary trade structures and sector structures make the FTA formation highly feasible. Although there are several factors which might hinder regional cooperation, and what's more, the differences of countryal policies, economics and disputes on openness of respective sensitive sectors may complicate the course, in the long run, cooperation among three countries is under the requirements of eras and benefits parties.There are a number of thorough data which serve as strong grounds of arguments. With quantitative analysis as major manner of researches, thorough aspects of problems and prospects focusing on FTA among China, Japan and Korea are considered in this paper. On the basis of extensive reading, benefiting from researches of this area, this paper strengthens the conclusions by views with considerable number of pictures, data and models. Several aspects, such as openness of sectors and FTA strategies and motives are considered and analyzed in writer's special opinions, when it comes to the barriers and difficulties of FTA among three countries.