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Korea Companies Cares For The Mainland Taiwan Trade Bill

2010/8/27 14:39:00 42

Nearly half

The Republic of Korea

The company is worried about a trade bill in mainland China, which could have a negative impact on their business, according to a survey on Tuesday.

In June, the mainland and Taiwan agreed to cancel tariffs on 539 categories of Taiwan goods, worth up to US $13 billion 830 million.

The so-called Economic Cooperation Framework Agreement (ECFA) covers services and investments, as well as competition and other issues.

According to a survey of 615 companies by the Korean Chamber of Commerce and industry, about 46% of the companies said that the trade agreement between the two sides of the Strait would have a negative impact on them.

Only 28% of the companies surveyed said they would benefit from the economic cooperation framework agreement.

Such sectors as machinery, semiconductors and textiles will be badly hit by this trade agreement, and the results of the survey show that.

Industrial observers say yes.

Taiwan commodity

Preferential tariff will strike the price competitiveness of Korean export products, because Korean products face high tariffs.

Seoul and Beijing seek to conclude a similar trade agreement.

The two countries completed the possibility of a joint free trade agreement approaching 4 years in May this year.

The conclusion of the feasibility study did not lead to an official consultation on the launching of the trade agreement immediately, because the two countries signed only the memorandum of understanding and additional discussions on sensitive issues.

China is Korea's largest.

Trading partner

It accounts for nearly 20% of South Korea's exports.

Last year, bilateral trade between the two countries reached 73 billion 700 million US dollars, and Korea's exports to China amounted to US $46 billion 100 million.