Study On Related Issues Of Establishing China-South Korea Bilateral-FTA

Economic globalization and regional economic integration has become two important trends of the world economic development,and plays the role of widespread and profound influence in all aspects of the economy in the world. In recent years, free trade negotiations has been been hampered by the background of the development of global multilateral, more and more countries began to promote economic growth by signing a bilateral FTA. As the most economically active countries of East Asian regional,China and South Korea has the close geographical location, homologous culture and two countries' close bilateral economic and trading.Since the establishment of diplomatic relations in 1992,there's a sharp rise in bilateral trade and investment, two countries' trade structure are highly complementary. Currently the official industry-academia joint study on the establishment of a bilateral FTA between China and South Korea is over in May 2010,two countries should conform to international economic trends,to put forward regional economic cooperation between the two win-win solution as early as possible, to strengthen bilateral economic and trade ties between the two countries, and promote the comprehensive development of bilateral economic and social,while helping to promote the process of regional economic cooperation in East Asia,to inject new vitality to East Asia regional economic development.Based on the analysis of previous research results and relevant literature, this article has studied the feasibility of establishing China and South Korea bilateral FTA combined with the current world economic situation. The whole text starting with the whole background of the topics of this article, research significance and focus of the study's difficulties of analysis; followed by the introduction of the concept of FTA,then discusse and summarize the theory of customs union and the economic effects of free trade in the regional economic integration theory; again, on the feasibility of establishing the bilateral FTA analysis, mainly from the discussion of three fronts: trade, investment and competition and complementary, including the use of a dominant comparative advantage index RCA, trade competition index TC and trade integration index to analyze the competitive and complementary between China and South Korea's industry, to make the conclusion of China and South Korea's industry and trade has reached a closely complementary; In fourth part, discuss the problems of establishing a bilateral FTA;and finally, based on the discussion of problems and obstacles,put forward the corresponding policy recommendations and path selection.