The FTA between China, Japan and South Korea has been under negotiation for 13 years, with the prospect of accelerating its conclusion.
These three nations are among the world’s top 10 exporters and importers of goods, account for one-fifth of the world’s population and together represent 23.4% of the world’s Gross Domestic Product (GDP).
FTA between China, Japan and South Korea
Japan’s Trade Minister Yoji Muto, South Korea’s Ahn Duk-geun and China’s Wang Wentao met in Seoul on Sunday and issued a joint statement shortly afterward.
“We are holding talks to accelerate negotiations for a Trilateral FTA with a view to achieving a free, fair, comprehensive, high-quality and mutually beneficial FTA with its own value,” they said in the document.
Below are the exports of each of these three nations in 2024, in millions of dollars:
- China: 3,575,500.
- Japan: 707,300.
- South Korea: 684,700.
In 2024, China ranked as the world’s largest exporter of goods, while Japan ranked fifth and South Korea eighth.
Trade negotiations
According to The Japan Times, all three countries are important trading partners of the United States, but historical issues and territorial disputes have often caused tensions between the neighboring states.
A couple of pieces of background: this was the first meeting between the trade ministers of these three Asian nations in more than five years and the FTA between them has not been able to be concluded since negotiations began in 2012.
These are their imports in 2024, in millions of dollars:
- China: 2,587,300.
- Japan: 742,900.
- South Korea: 699,000.
China was the second largest importer of products on a global scale, Japan ranked fifth and South Korea ranked tenth.
While the trade ministers of these countries made announcements of increased trade and economic cooperation between them, they did not make any expressly related statements about the new tariffs approved or planned by U.S. President Donald Trump.
Trump’s tariffs
The 25% tariffs on imported automobiles went into effect on April 3, 2025. In addition, a 25% tariff will apply to certain auto parts, which will take effect no later than May 3, although the exact date will be confirmed in a forthcoming notice.
Since March 12, 2025, tariffs of 25% on steel and aluminum products are also in effect. On the other hand, the 25% tariffs on Mexico and Canada have been paused until April 2, 2025.
As of February 4, 2025, all Chinese products face an additional 10% tariff. In addition, as of March 4, another 10% was added, raising the tariff burden.
Reciprocal tariffs with differentiated rates for different countries will also be announced, with a possible announcement this Tuesday or Wednesday.
On February 25, Donald Trump signed an order to initiate an investigation. Its objective is to determine whether it is in the U.S. interest to impose tariffs on copper imports from around the world.