the trilateral fta · 2015. 1. 30. · trilateral fta will benefit to all the three countries by...
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The Trilateral FTA: The Trilateral FTA:
A Pillar of Trilateral Cooperation A Pillar of Trilateral Cooperation
and East Asia Economic Integrationand East Asia Economic Integration
2012.10.23 (TUE)2012.10.23 (TUE)
NorthNorth--East Asia Forum on Trade and Transport FacilitationEast Asia Forum on Trade and Transport Facilitation
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CONTENTSCONTENTS
1.1. Significance of Trilateral Economic Significance of Trilateral Economic
Cooperation and Trilateral FTACooperation and Trilateral FTA
2.2. Progress of Trilateral FTA Progress of Trilateral FTA
3.3. Ongoing Trilateral Economic CooperationOngoing Trilateral Economic Cooperation
4.4. The Role of TCS and ConclusionThe Role of TCS and Conclusion
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1.1. Significance of Trilateral Economic Significance of Trilateral Economic
CooperationCooperation
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• China (2nd), Japan (3rd) , ROK (15th) combined GDP accounts for 20% of the
world GDP.
• Their combined population makes up almost 22% of the world population
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• China (1st), Japan (2nd) , ROK (7th) combined foreign reserves make
up almost 50% of the world’s total
• China, Japan and ROK account for 18% of World’s Trade.
ChinaChinaChinaChina
30%30%30%30%
Russia5%India
3%
R O KR O KR O KR O K
3%3%3%3%
Brazil
3%
JJJJap anap anap anap an12%12%12%12%O thers
43.3%
Foreign Reserves (2011)
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• For China, Japan and ROK are the 2nd and the 3rd largest
trading partners during 2011
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• For Japan, China and ROK are the 1st and the 3rd largest
trading partners during 2011
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• For ROK, China and Japan are the 1st and the 2nd largest
trading partners during 2011
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• The shares of intra-regional trade in total trade of Japan and ROK have
been increasing while that of china has been steadily decreasing.
• Intra-regional trade levels were much lower than those of EU and NAFTA
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2.2. Progress of Trilateral FTA Progress of Trilateral FTA
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1. Bilateral FTAs among the three countries
2. Asian Financial Crisis and the Birth of Trilateral
Cooperation
3. Launch of the Trilateral Joint Research
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2004Trade Ministers of China and the ROK agreed to launch a joint study
by private research institutions
2005-2006 Joint Study by private research institutions (DRC and KIEP)
2007-2010China-ROK FTA Joint Study Group composed of representatives from
government, business and academia
2010.5The two Trade Ministers signed the Memorandum on the conclusion
of the Joint Study Group
2012.5Joint Ministerial Statement on the Launch Of Korea-China FTA
Negotiation
2012.5 - 3 rounds of the official negotiations and still in progress
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1998
Prime Minister Obuchi of Japan and President Kim Dae-joong of the
Republic of Korea agreed to reinforce economic partnership between
the two countries
1998-2000 Joint Study by private research institutions (IDE and KIEP)
2002-2003Japan-Korea FTA Joint Study Group composed of representatives
from government, business and academia
2003-2004 6 rounds of the official negotiations
2004 - Negotiations Suspended
2008-2011 Working level consultations for the resumption of the negotiations
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-- 2005Business circles as well as academia of both countries had expressed
desire for China-Japan FTA
2005.5
Chinese Vice Premier Wu Yi highlighted the importance of starting the
process of China-Japan FTA on the occasion of the 21st Century
Urban Development Forum in May 2005 in Nagoya, Japan
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• At the 1st trilateral summit in
Manila in 1999, the three
leaders agreed upon trilateral
joint research on economic
cooperation among the three
countries, which President Kim
had proposed.
• The Joint Research on Trade
Facilitation and Investment was
launched in 2000 by the
research institutions of the
three countries 16
• At the trilateral summit in
November 2002 in Phnom Penh,
the leaders of the three countries
agreed on the launch of a new
research on Trilateral FTA, which
Chinese Premier Zhu Rongji
suggested.
• In 2003, the research institutions
of the three countries embarked
upon the new phase of the joint
research on Trilateral FTA
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Major Findings of the Trilateral Joint Research (2003-2009)
1Trilateral FTA will generate positive macro-economic effects for all the
three countries by increasing their GDPs (China 0.4%, Japan 0.3%, ROK
2.8%)
2Trilateral FTA gained broad-based support from enterprises in the three
countries.
3Trade liberalization will be the biggest contributing factor to overall welfare
gains by expanding the regional market and optimizing resource allocation
4Trilateral FTA would give some impacts on agriculture and fishery sectors.
However, it could serve as a good opportunity to reform those sectors and
prepare for global integration in agricultural trade.
5Trilateral FTA would raise the competitiveness of service sectors by
introducing competition.
6There are obstacles to Trilateral FTA such as the existence of sensitive
sectors, historical issues and lack of Northeast Asia community spirit.
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Joint Study Committee for Trilateral FTA composed of Government
Officials and Participants from Business and Academic Fields
Major Points of the Joint Study Report (2011.12.16)
1Trilateral FTA will expand trilateral and bilateral trade and investment among
them
2Trilateral FTA will strengthen relations among the three countries, and
contribute to making progress in the ongoing process of economic
integration in East Asia
3Trilateral FTA will benefit to all the three countries by realizing more fully the
complementarities in the trilateral economic relationship and by eliminating
trade and investment barriers
4The three countries should make efforts to address the sensitivities of each
country in the entire negotiation process
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2012.05 : The 5th Trilateral Summit agreed on the Launch of
Official Negotiations on the Trilateral FTA within year 201220
2012.61st Preliminary Working-level Consultations on the Trilateral FTA in
Tokyo
2012.82nd Preliminary Working-level Consultations on the Trilateral FTA in
Qingdao
2012.93rd Preliminary Working-level Consultations on the Trilateral FTA in
Seoul
2012 Launch of the Trilateral FTA Negotiation
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• Sensitive Sectors
– China – petroleum and chemicals; automobiles; machinery and
electronics; iron and steel; ship building
– Japan – food products and beverages; apparel; textiles
– ROK – textiles; consumer goods; electrical and electronics
equipments; non-ferrous metal; food products and beverages; apparel
• Modality
– Common tariff concession
– Rules of origin
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• Regional Perspectives
R C E P
ASEAN
Cambodia
Laos
Myanmar
Indonesia
Philippines
Thailand
Singapore, Brunei,
Malaysia, Vietnam
Japan
ROKChina
USA, Peru, Chile,
Canada, MexicoAustralia,
New Zealand
CJK
TPP
India
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3.3. Ongoing Trilateral Economic CooperationOngoing Trilateral Economic Cooperation
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• Aim at achieving quick efficient flow of logistics information between the three
countries and to jointly carry out related researches 25
AEO Mutual Recognition
• In order to facilitate effective customs control, the three countries established
working group to compare their AEO programs
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Northeast Asia Standards Cooperation Forum
(NEAS Forum)
• Aim at promoting the development of international standards and harmonization of
standards among the three countries.27
Emerging Cooperative Areas
1. Energy Cooperation
� Sustainable Development
� Energy Security
2. Industry Cooperation
� ICT
� Biology (Medicine, Agriculture, Ocean)
� Sophisticated techniques (robot, space, new materials)
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4.4. Conclusion and the Role of TCSConclusion and the Role of TCS
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Promote the Trilateral Cooperation
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Support the process of Trilateral FTA
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Thank YouThank You
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