China and South Korea initialed free trade agreement, Nantong export textile enterprises enjoy benefits

On February 25, China and South Korea completed the initialing of the entire text of the China-South Korea Free Trade Agreement and confirmed the content of the agreement. At this point, the China-ROK free trade area negotiations have been completed. The reporter learned that after the implementation of the agreement, most textile and apparel products will enjoy zero-tariff treatment, which will save Nantong textile and apparel export companies about 40 million US dollars in tariff costs every year.
After the free trade area agreement is reached, after a transition period of up to 20 years, China’s zero-tariff products will reach 91% of the tax purpose and 85% of the import value, and South Korea’s zero-tariff products will reach 92% of the tax purpose and import value. 91%, which will greatly promote exports from both countries.
Within the framework of the Asia-Pacific Free Trade Agreement, textile and apparel products exported to South Korea can enjoy an average tariff reduction of 25%, which reduces importing country tariffs for textile and apparel companies in Nantong by about US$9.98 million. After the implementation of the China-Korea Free Trade Area Agreement, most textile and apparel products exported to South Korea will enjoy zero tariff treatment.