Possibility Of The Formation Of A Free Trade Zone In South Korea, China, Japan And The Expected Effect

Nowadays, regional economy becomes new trend of world trade. And the Free Trade Agreement is the main trade form of regional economy. Free Trade Agreement is the agreement about move liberalization of goods and service for mutual trade enhancing between specially appointed countries, and it is the trade preferential policy of relieving and canceling a series of trade agreement between each countries for realizing trade liberalization. The EU and the NAFTA are the most typical area of the regional economy. Under the trend of world regional economy, Korea, China and Japan, the Northeast Asia Three Kingdoms which have boundless potential, need cooperation in many aspects for facing the threat of regional economy. Especially the economic cooperation can not be ignored. In this case, this paper studies the northeast economic cooperation through analyzing the possibility and anticipated effect to taking FTA form between Korea, China and Japan which is called Northeast Asia Three Kingdoms. And this paper states its opinion based on the measure analytical result which is from relative department. This paper analyzes that Korea, China and Japan FTA formation is helpful to form big unified marketplace, and it can also enlarge the trade and investment of the three countries to help these three countries'effective resource allocation and to make these countries GDP increase more. Besides, Korea, China and Japan FTA formation makes these three countries fight against the localism of America and EU, and it also reduces the trade friction between the three countries and developed countries.