How Does The Implementation Of The China South Korea, Sino Australian Free Trade Agreement (FTA) Affect China?

What benefits can be brought to China by the implementation of the Sino South Korea, Sino Australian free trade agreement (FTA)? What is good for the enterprises? As a result of speeding up the implementation of the FTA strategy, what will be the impact of the two major agreements on China's foreign trade and economic structure?

The researcher of the Ministry of Commerce of the Ministry of commerce thinks that the effect of the free trade area on economic and trade promotion will not be fully realized.

Function requires the two sides to implement their commitments on schedule and continue to promote innovation.

How much has the tax been reduced?

South Korea's cosmetics, clothing, food and mobile phones and other electronic products, Australia's beef and mutton, dairy products, wine, fruit and so on.

In recent years, many products in Korea and Australia have been sought after in China.

After the FTA comes into effect, the most direct benefit to ordinary consumers is naturally.

Concessions bring lower prices and more choices.

For example, South Korea's refrigerators, rice cookers and some beauty appliances and other household electrical appliances will abolish the current tariff of 15% in 10 years. The tariffs on toothpaste and other dental cleaning products will be reduced to zero in 10 years. The tariff of kimchi will now be abolished within 20 years, and the tariffs on the most productive products in clothing, shoes and caps will be reduced from about 15% to zero in 10 to 20 years.

After the entry into force of China and Australia FTA, the import tariff of Australian food will be generally reduced, which is a great gospel of "gluttonous guest" in China.

Australia is currently the largest source of beef imports in China. At present, the average tariff of 15% of Australian beef will drop to zero in 10 years. Dairy products, including infant formula, will be exempt from customs duties in 4 years. After 5 years of pition, the average wine tax rate will be reduced from 34.7% to zero.

In addition, most of the imported oranges, orange juice, Australian lobster, large abalone, king crab and so on will be fully liberalized and the tax rate will be reduced to zero.

For consumers in Korea and Australia, the "made in China" of good quality and good price will also become a frequent visitor in life.

China's agricultural and aquatic products and vegetables will increasingly appear on the dining table of Korean families, and Chinese clothing and electronic products will also enter the Australian market more conveniently.

Insiders pointed out that the two FTA opened the two countries.

"The curtain of the times, but the completion of tax reduction needs a process.

For example, the FTA pition period in China and Korea will last 20 years, and dividends will be gradually released.

Where is the opportunity to "nugget"?

Yesterday morning, 2600 tons of liquid sulphur was imported from Qingdao customs.

Benefiting from the FTA tax cut arrangement, the 20 thousand yuan import tariff that the enterprise originally needed to pay has dropped to zero.

This is the first batch of imported goods benefited after China and South Korea FTA came into operation.

Chen Jihua, manager of the purchasing department of Shandong chemical fertilizer Limited by Share Ltd, said that after the implementation of the FTA, each ton of sulphur can be reduced by about 10 yuan at the current market price, and the enterprise can save about 1000000 yuan a year.

"The reduction of production cost will be reflected in the selling price, and farmers will benefit from fertilizer in the future."

A group of mini robots exported by Tong Feng Youdao automation equipment Co., Ltd. has become the first export goods to enjoy FTA tariff preferences between China and South Korea.

"The tariff of China's intelligent robot entering Korea is reduced from 8% to zero, and only these goods can save taxes and fees by more than twenty thousand yuan."

The head of the company said that the reduction of costs will directly enhance the competitiveness of enterprises in the Korean market.

In recent years, the scale of trade between China, South Korea and Australia has been expanding. Considering the trade creation and pfer effect of FTA, the preferential trade volume will soon increase after the implementation of the two FTA.

According to the preliminary forecast of the Chinese customs, in the year after the implementation of the FTA between China and South Korea, about 26 billion US dollars of Chinese export goods and 20 billion US dollars of Korean export goods will enjoy preferential tariffs on the other side. Under the terms of Sino Australian FTA, about 20 billion US dollars of Chinese exported goods and 15 billion US dollars of Australian exports will enjoy tariff preferences on the other side.

Xu Hongqiang, a researcher at the State Council Development Research Center, believes that China and South Korea each have their own advantages and disadvantages. After the liberalization of the market, individual industries will be affected, but most industries in China and South Korea will benefit from bilateral trade liberalization.

Opportunities exist not only in the trade of goods.

China and South Korea FTA promise to use the pre admission national treatment and negative list mode to carry out trade negotiations on services and investment in the future and set up e-commerce chapters. China Australia FTA has also made great achievements in the field of services and investment. TCM's "going out" and deepening cultural exchanges at all levels are bright spots.

What is the spillover effect?

According to the Korea Institute for foreign economic policy, China and South Korea FTA will take 0.4 to 0.6 percentage points of China's economic growth within 5 years of its entry into force. The growth rate of South Korea's economy is expected to increase by 1.25 percentage points.

Australian studies also show similar positive results.

At the same time, a consensus is emerging: the impact of the optimization of trade environment is integral, and it is not only consumers, certain enterprises, but also not limited to relevant countries.

China, Korea and Australia are all important economies in the region and even in the world.

At present, the world economic recovery is weak, and expanding trade and investment is a good medicine to deal with the economic downturn.

Therefore, the successful implementation of the FTA agreement between China, Korea and Australia will not only provide a new engine for the economic development of the relevant parties, but also play an active role in regional and even world economic prosperity.

The Sino Korean free trade area is the first FTA in Northeast Asia.

Reporters in contact with the Chinese and Korean enterprises found that people in the trade and economic circles expect that China and South Korea will have a demonstration effect in the construction of the free trade area, which will lead to the ninth round of China Japan Korea FTA negotiations.

The FTA of China and Australia, the two largest economy in the East and West, is another heavyweight FTA in the Asia Pacific region following the FTA of China and South Korea.

Gao Hucheng, Minister of Commerce, has said that the agreement is aimed at China's "one belt and one road" joint development initiative, and docking Australia's "Asia Oriented" policy vision, will effectively promote the process of economic integration in the Asia Pacific region.

In accordance with the agreement between China and South Korea, the two sides promised to continue the negotiations on service trade with negative list mode after the signing of the agreement, and to carry out investment negotiations based on the national treatment before admission and the negative list mode.