Korea Companies Cares For The Mainland Taiwan Trade Bill

2010/8/21 10:09:00 36

Nearly half of Korea Companies worry about mainland Taiwan.

Trade

Bill, which may be against them.

business

Negative effects, a survey showed 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

The Republic of Korea

About 615 of the companies surveyed by the chamber of Commerce and industry, about 46% 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 preferential tariffs on Taiwan products will hurt the price competitiveness of Korean exports, 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 South Korea's largest trading partner, accounting 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.