Feasibility Study Of Sino-Russian Fta

In today's world of rapid economic development, regional economic integration has become the world's major economic trends in the development process. As one of the main forms of the regional economic integration, the free trade area (FTA) has been favored by more and more countries due to the short negotiation time, quick results and maximal utilization of the domestic advantages in multilateral trade. At mean time, the FTA can avoid the globalization risks, and improve the competitiveness of the FTA members. China and Russia, the two of the four BRICs, sharing over 4300 km land boundary, play pivotal roles in world's economics. The Sino-Russian bilateral trade volume in 2010 was 57.05 billion dollars. In Decemeber 2011, Russia has successfully joined the World Trade Organization, ending the 18 years'marathon course, and opened a new chapter for the development of bilateral economic and trade activities. Considering the fact that both China and Russia are in their economic transitional periods, studying of the feasibility of establishing Sino-Russian FTA has important practical significance.Based on the summarized theories on FTA, this paper comprehensively discusses the necessity, feasibility and different approaches in establishing the Sino-Russian FTA from both theoretical and practical perspectives. Among which, this paper focuses more on the feasibility with least-squares regression equation and related trade index, and the main factors which effect the establishment of bilateral FTA are analyzed and summarized. Other perspectives are also considered in this paper.According to the research results, in spite of all negative factors, establishing the Sino-Russian FTA is still feasible. Both China and Russia should be positive in series issues such as reduction of tariffs, and make concessions in their profits during negotiation. Both countries should foresee the enormous benefits after the labor pains during the establishment of the FTA. Based on the common interests, they should make full use of the advantages such as geography, politics and complementary resources, to face the challenges, and to overcome the obstacles. The establishment of Sino-Russian FTA is a long, complex process that requires the joint efforts of both countries. The FTA will be the solid foundation of the further bilateral economic and trade cooperation between China and Russia.