Study On Construction Of China Japan Korea Free Trade Area

Half of the20th century, regional economic integration trend to strengthen, the world’smajor economies are actively participating in regional economic cooperation. Regionaleconomic cooperation has become an irreversible trend. Countries in east Asia, Japan andKorea as a major economy, should actively promote directional, multi-tiered andwide-ranging regional cooperation, meanwhile establishing a free trade area will enhancepolitical and economic communication. The trade area is nearly$14trillion of gross domesticproduct, total trade volume of$5trillion and nearly1.5billion population of the market, theestablishment of a free trade area can not only promote the economic and trade cooperationand promoting economic prosperity in east Asia, and could maintain security in theasia-pacific region, at the same time, it will make an impact on the global economicintegration.This paper take necessity of China, Japan and Korea free trade area as the starting point,analyses the background of regional economic integration, the three countries conform to thetrend of The Times, so it is necessary to actively promote the construction of China, Japan andKorea free trade area. Then respectively from regional culture, trade, investment, economiccomplementarity, four aspects in detail elaborated the establish the realistic foundation ofChina, Japan and Korea free trade area. This paper pointed out that the three countries hasadvantageous geographical conditions, similar to cultural traditions, huge investment andtrade flows in the area, and use of dominant comparative advantage index shows that the threeeconomies are highly complementary to each other.Then using the method of measurement,according to Three Kingdoms total trade volume with partners in2012, use the trade gravitymodel to research, the results showed that have huge potential in continuing to carry out trade.But only from the perspective of the trade, Japan and Korea free trade area, the feasibility isnot enough, therefore,analyzed the non-traditional benefits, and then from the perspective ofa broader points out the feasibility of China, Japan and Korea free trade area. China, Japanand Korea free trade area is not achieved overnight, however, there are still large difference ofeconomic development level, trade imbalances, free trade zone control competing with eachother, and the influence of the United States and the association of south-east Asian nationsasia-pacific strategy, as well as historical and territorial issues. To China, Japan and Koreafree trade area as soon as possible, based on the three economic cooperation of the various difficulties, gradually eliminate trade barriers, three countrys put forward to strengthen thecooperation between the government, and actively carry out trade with multinational, good atindirect ways at the same time, efforts to carry out the three sub-regional cooperation, usingthe10+3platform and china-Korea free trade area gradually advance the establishment ofChina, Japan and South Korea free trade area.