I think that we must do FTA with many countries. This article shows the result of FTA with Chile and Singapore. There has been a huge increse in the amount of trade with that country. And the market share rate has been grown after FTA, in especially automobile in Chile. In macro economic class, I've learned that the protectionist trade policies doesn't change the trade condition. It just raise real exchange rate. It can decrease the amount of import. But because of the increase in real exchange rate, the amount of export also decrease. So net trade is fixed. For these reasons, I think that we have to do FTA with U.S.A, E.U and also with another many countries.
-----------------------------------------------------------------------------------------------
Chile, Singapore FTAs firing on all cylinders -2008/03/28
Korea's experience with its first two free-trade-agreement partners -- Chile and Singapore -- is proving to be favorable for both trading partners, government studies showed yesterday, countering negative notions held by opponents of market liberalization.
The upbeat report released by the Ministry of Foreign Affairs and Trade in Seoul found that two-way trade between Korea and Chile has jumped more than four-fold to $7.53 billion from the $1.85 billion recorded before the FTA.
The report comes as the two countries celebrate on April 1 the fourth anniversary of the FTA's implementation. Underscoring the positive impact for Korea's export-driven economy, the study said the country's exports to the South American country expanded more than six-fold to total $3.3 billion as of last year, compared with $500 million in 2003.
In the same year, demand for Korean automobiles reached No. 1 in Chile, with a market share totaling 29.3 percent, surpassing Japanese cars, which made up 25.2 percent. Before the trade pact, Japanese cars accounted for 23.5 percent and Korean ones were 18.8 percent.
Between April 2007 and February 2008, exports to Chile totaled $3.3 billion, a 92.3 percent surge from a year ago. By category, demand for cars jumped 38.9 percent, steel plates 63.1 percent, tires 47.2 percent and gasoline 211 percent.
......
With Singapore, Seoul's second FTA partner -- which took effect in March 2006 -- bilateral trade has soared 51.2 percent to total $20.3 billion into the second year this year, compared with $13.4 billion seen before the FTA. Throughout the same period, Korea's trade deficit with Singapore shot up 151 percent to $5.8 billion from $2.3 billion.
The market share of Korean goods in the Southeast Asian nation, however, rose to 4.9 percent in 2007 from 4.3 percent recorded in 2005, the ministry report showed.
Products that posted the biggest surge in exports since 2006 were petroleum, which rose by 834.8 percent, ships (500.3 percent), and miscellaneous petrochemical products (189.7 percent). Growth in imports from Singapore was led by semiconductor-related items (380.7 percent), computers (96.3 percent), and computerized recording devices (73.4 percent).
New investments into the country from Singapore throughout the past two years averaged $540 million a year, more than a two-fold jump from the annual average of $270 million attracted between 2001 and 2005 before the free trade pact. Major areas of investments were the finance and insurance industries, totaling $270 million, followed by electrical and electronics firms with $160 million, and property leasing companies with $130 million.
Trade experts say success of a free trade deal comes with the effort to make structural reforms, improve competitiveness, and create a safety net, especially in the case of the agricultural sector, which would face reduced income resulting from a drop in agricultural prices.
From. http://www.koreaherald.com/ 2008/03/28
No comments:
Post a Comment