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Pres. Park mulls free trade proposal at three-way summit

Pres. Park mulls free trade proposal at three-way summit

Posted November. 15, 2014 02:49,   

한국어

Following South Korean President Park Geun-hye`s proposal of a three-way summit among Seoul, Beijing and Tokyo, the South Korean government is considering proposing a quick signing of a free trade agreement (FTA) among the three neighboring countries. The move is interpreted as an intention to address the three countries` diplomatic tensions through economic cooperation.

"It is a very natural thing to propose that the South Korea-China-Japan summit add momentum to a free trade agreement," a senior South Korean official said Friday. "(The proposal) will likely serve as a catalyst for creating a diplomatic appeasement situation as well as for a quick agreement on a three-way free trade deal."

A senior official at Seoul`s presidential office Cheong Wa Dae also noted, "Regardless of the settlement on a South Korea-China FTA, it is worth pushing for a South Korea-China-Japan FTA."

The negotiations for the proposed three-way FTA came into full force when the leaders of the three neighbors declared the beginning of preparatory talks in May 2012. There have been five rounds of FTA talks since the first round negotiations began in May 2013. However, the talks have ended up being just formalities as the three countries failed to narrow differences and had diplomatic frictions.

Seoul believes that the three-way FTA will likely help them restore their diplomatic relations, as they involve less diplomatic burdens and serve the cause of seeking economic growth by increasing mutual trade and expanding openness to one another. Seoul`s state-funded Korea Institute for International Economic Policy projected that a three-nation FTA would increase South Korea`s real gross domestic product by 1.45 percent over the next 10 years.

However, some say that it is too early to discuss a three-way FTA at a time when it remains unclear whether a three-nation summit is unclear. A Cheong Wa Dae official said, "The (South Korean) government made no decision whatsoever as to a South Korea-China-Japan FTA.” We will respond while watching the process for a three-way summit."