Trilateral Free Trade Agreement

Currently, China is Japan`s largest trading partner and South Korea, and Japan and South Korea are China`s second and third largest trading partners, respectively. At the eighth China-Japan Summit of Heads of State and Government and last year, the heads of state and government of the three parties said they would work hard to achieve a free, fair, non-discriminatory, transparent, predictable and stable business and investment environment, and to keep markets open. The eleventh round of discussions took place from 9 to 11 January 2017, during which trade in goods, trade in services and investment was discussed. [5] Yeo Han-koo, South Korea`s chief negotiator, said he would seek a win-win agreement to create a base for economic cooperation and prosperity in Northeast Asia through the dynamics of the RCEP conclusion. SEOUL, November 26 (Xinhua) — China, South Korea and Japan will hold a new round of negotiations on the trilateral free trade agreement (FTA) in Seoul this week, as announced Tuesday by South Korea`s Ministry of Commerce, Industry and Energy. “As the supply chain shrinks, the economic relations of the three countries are getting closer and closer, making it more necessary to sign free trade agreements,” a Source from Japan`s Foreign Ministry told Yicai Global last year. This will benefit not only the three nations, but also the whole world, he added. The fifteenth round of discussions was held in Tokyo from 9 to 12 April 2019. [5] “This round of negotiations is the first after the three parties have reached a consensus on the overall acceleration of negotiations. The three parties held a meeting of the chief negotiators, the hearing of directors-general and 13 sub-conferences on specific topics, reached a positive consensus on how and how to negotiate relevant issues, and outlined working arrangements for the next stage. The three parties unanimously agreed to further increase the level of trade and investment liberalization on the basis of the consensus established in the Regional Comprehensive Economic Partnership Agreement (RCEP), in which the three parties participated, and to adopt high standard rules for the creation of a RCEP Plus free trade agreement. – fta.mofcom.gov.cn[6] It has been speculated that negotiations will accelerate on the basis of the US government`s current “trade war” with China. In 2007, China, Japan and South Korea began negotiations for a trilateral investment agreement.

The agreement was officially signed in May 2012. In November of that year, the three countries formally began negotiations for a free trade agreement between China and Japan and South Korea. Although President Xi Jinping`s visit to Japan has been postponed due to the pandemic, warm relations between China and Japan have created good conditions for valuing and developing bilateral relations. China can also mediate trade negotiations with Japan and South Korea as part of a high-level high-level dialogue with Japan to strengthen the investment agreement and create a free trade agreement. If China, Japan and South Korea reach a free trade agreement, it would be the third largest free trade area in the world after the U.S.-Mexico-Canada (USMCA) agreement with the European Union. In the context of a paralyzed WTO appeal body, China-U.S. The momentum has shifted more and more towards regional and bilateral free trade agreements (FTAs). In this context, China and Japan should seize the opportunity to adapt their approach to deepening economic cooperation. Despite the effects of the COVID 19 pandemic, bilateral trade between China and Japan reached nearly $150 billion in the first half of 2020.

Japan`s investment in China amounted to about $2 billion, which is essentially the same level as the previous year. These resilient flows reflect the deep foundations and enormous potential of relationships

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