Promoting FTA negotiations is "natural": official

The establishment of a free trade area amongst China, Japan and South Korea is a "natural" outcome of the development of the three countries' economic and trade relations.

That's according to Bark Tae Ho, the Republic of Korea's trade minister.

Bark, along with Chinese Commerce Minister Chen Deming, and Edano Yukio, minister of Economy, Trade and Industry of Japan, met in Phnom Penh, Cambodia, on Nov. 20 on the occasion of a series of meetings of East Asian leaders. There, they announced the launch of the free-trade agreement (FTA) negotiations among China, Japan and Korea.

The first round of talks will be held in January.

"The consultation among South Korea, China and Japan has started for a long time. As a result, it is very natural to formally launch the negotiations right now," Bark, who just returned to Seoul, told Xinhua in a recent interview.

"Moreover, it is already a little late to start the negotiations now. They should have been launched before," he added.

As major world economies, China, Japan and South Korea are not only near each other in geography, they are also important partners in trade and investment.

The total gross domestic product (GDP) of the three countries in 2011 amounted to 14 trillion U.S. dollars, which accounted for 20 percent of the world's GDP. What's more, they also have close cooperation in the division of labor in the global industrial chain.

"If the systems and rules of South Korea, China and Japan can be systematically integrated, the three countries' enterprises will acquire great convenience," Bark said.

He added that "a good business environment will be provided, which can lower the uncertainty of the companies."

However, although there is great significance in setting up a free-trade area among the three countries, Bark also noticed that big practical difficulties also existed because the countries all have their own considerations and concerns.

"In my opinion," Bark said, "bilateral discussions and agreements should be carried out and reached at first, then the trilateral consensus can be made."

Compared with the free-trade area among the three countries, the South Korea-China free-trade area is a more "natural" phenomenon, Bark said.

During the series of meetings of East Asian leaders in Phnom Penh, Cambodia, he said, not only did the two countries' trade ministers hold talks, but also South Korean President Lee Myung-bak and Chinese Premier Wen Jiabao held a meeting, with both sides believing bilateral negotiations for a FTA should be propelled.

"In my opinion, the economic and trade relations between South Korea and China right now is more active and closer than ever before," Bark said. "As a consequence, we should focus on promoting the South Korea-China FTA. The agreement cannot be reached in one or two days, but I hope it will be finalized in a short time."

Since the two countries' FTA negotiations started in early May, four rounds of talks have been held. A fifth round was expected to be started in as early as January.

Bark said the two sides have a big divergence on the division of general products and sensitive products.

"I have made a consensus with Chinese Commerce Minister Chen Deming at this meeting. We should shore up the South Korea-China FTA as soon as possible, and try to make some progress at the fifth meeting next year," he said.

Bark said the two countries are members of the World Trade Organization (WTO) and South Korea and China should make a FTA with "good role model."

"Although it cannot be fully open, it must be a FTA with comparatively high liberalization and very comprehensive content," he said. "This is our common view."

In addition, during the meetings in Phnom Penh, 10 ASEAN nations and six dialogue partners, namely China, South Korea, Japan, India, Australia and New Zealand, officially started negotiations for the Regional Comprehensive Economic Partnership (RCEP).

ASEAN 10+3 has become "the principle axis of the economy and trade of East Asia, which is a new engine for growth," Bark said.

Developed economies such as Europe, the United States and Japan, are suffering a stumbled economy and sluggish growth, which "have no power to boost the global economic development, Bark said, adding that the emerging economies including China, ASEAN and India are the main momentum.

Meanwhile, Bark also pointed out that the political, territorial and historical issues among South Korea, China and Japan hindered the development of the three countries' economic and trade cooperation to some degree.

Issues of pure domestic politics can be tackled by the principle of "separation of politics and economics," he said. However, "if the event matters with a country's core interests, it will definitely affect the economic and trade relations," he added.

"In fact, there are not so many problems with the ordinary people," Bark said. "The problems mainly come from the government circle, especially the Japanese politicians. If they have no fundamental changes in their stance, the Northeast Asia's economic cooperation must be affected and impeded."

Mentioning the Trans-Pacific Partnership (TPP), Bark said being different from a South Korea-China-Japan FTA, the TPP is "a little unnatural."

"South Korea, China and Japan are very near to each other in geography. There are great benefits for the nearby countries to form FTA. Whereas, TPP is different," he said.

Among the 11 participating countries of TPP, South Korea has signed FTA with seven and is negotiating with the other four.

"Currently we are still watching by, observing the trend of the development of TPP," Bark said.

Judging from the tendency of regional development, "the Asia-Pacific economic integration is sure to be realized," he said. "From this point of view, TPP is also meaningful. But what I must emphasize is that it is a long process."