year. THAT means... Korean businesses will get to

enjoy the benefits from tariff cuts starting January 1st.

Our Kim Min－ji breaks down the economic impact from Korea， China FTA.

Over the next 10 years，... the Korea－China FTA is expected to boost Korea′s real GDP

by almost one percent... and create over 53－thousand new jobs.

″The government is working closely with China and modifying related rules for the

trade deal to take effect this year. If this happens， tariffs will immediately be cut

the day it takes effect and again on January 1st.″

Under the deal， Seoul will eliminate import tariffs on 79 percent of all products from

China within a decade，... while Beijing will do the same on 71 percent of all products

from Korea. In 20 years，... duties will be removed on

over 90 percent of all goods. That translates to over five billion dollars

less in tariffs paid by exporters every year.

″Korea′s free trade agreement with it′s largest trading partner， China，... is

expected to provide new momentum for local exports，... that have fallen consistently

every month this year.″ The FTA is expected to boost annual bilateral

trade between the countries to more than 300 billion U.S. dollars，... up nearly 40 percent

from 2012. In addition，... the deal gives Korea price

competitiveness over rivals in China′s huge consumer market.

″Korea′s early advancement into the Chinese market， earlier than our competitors，

like the U.S.， and Australia， is critical for Korea′s long term success in the Chinese

market.″ Like many other trade deals， the agriculture

sector has been a sticking point. But experts say the level of liberalization

for the agro－fishery sector is lower compared to Korea′s other FTAs.

″Korea was able to protect highly sensitive products， including rice. There′s going

to be damage to some sectors， but we can′t say it′s entirely because of the FTA.″

The government says that further opening of China could give Korea′s agriculture sector

more opportunity to make inroads into the Chinese market.

Kim Min－ji， Arirang News.