Abstract
Regional Trade Agreements (RTAs) have become a prominent feature of the Multilateral Trading System. The surge in RTAs has continued unabated since late 1990s, most of the WTO members have taken part in one or more regional trade arrangements. As of 31 July 2013, some 575 notifications of RTAs(including trade agreements in both goods and services) had been received by the WTO. Of these, 379 notifications were have taken effect. As the most important economies in East Asia, China-Japan-South Korea economic structure has a certain degree of complementary. Especially in recent years, economic and trade exchanges among the three countries have been strengthened. China has become the largest trading partner of Japan and South Korea, and South Korea is China's fourth largest trading partner, and also Japan is China's third largest trading partner and second largest source of foreign investment. The three governments deem China-Japan-South Korea Free Trade Area as a new platform for further promoting trade liberalization and facilitating investment. The establishment of CJK FTA has become their common aspirations.
Trade in services was an important part in the negotiations of Doha Round. But with the suspension of the Doha round, more and more countries have opted for regional trade agreement as the path toward liberalization of trade in services. As an important component of regional trade agreements, the liberalization of and cooperation over trade in services will also be a key topic in the negotiations over CKJ Free Trade Area. At present, China has signed 12 FTAs, and 10 agreements contained the content of trade in services. But most of these partners are developing countries and emerging economies. Cooperation over trade in services based on China-Japan-South Korea FTA is a game among China and developed countries. China, Japan and South Korea have their own competitive advantage in the service industry, and China's service industry is relatively underdeveloped. In respect of modern service industry, there is a big gap between China and Japan and South Korea. How to determine the sectors of commitments and the level of concessions in regional trade in services agreement, what is the impact of the liberalization of trade in services on the economy, how to choose the opening path for regional liberation of trade in service, how to formulate mutually beneficial institutional arrangement for all countries, what kind of opening-up strategy should China adopt, how to face keen competition of foreign services providers? All of these issues are worthy of being in-depth studies.
Firstly, the book analyzes the basis for cooperation among China, Japan and south Korea over trade in services, overall trade situation and development features, intra-industry trade in services, andits competitive advantages. Through the analysis of these four aspects，their advantages and disadvantages are documeuted, and their competitive and complementation sector are found. Further more, we study China-Japan-South Korea involved in the practice of regional trade in services, analyze the liberalization level of their trade in services in the multilateral and regional framework, trade barriers and domestic regulation to help them find a mutually beneficial and effective institutional arrangements. On this basis, it tries to ascertain that if the three countries signed a free trade agreement will produce how much of the trade creation effect by Empirical research. Finally, it puts forward some policies and strategies for China to participate in CJK regional trade in services agreement.
This book is made up of six chapters and organized as follows:The first chapter introduces research background and significance, research ideas and research framework of the dissertation. It presents the research methods and points out innovation and deficiency of the book.
The second chapter is theoretical foundation. It introduces theories of static and dynamic effects of regional economic integration, the regional liberalization of trade in services, multilateral and regional liberalization of trade in services relationship theory. It builds a theoretical framework for the study on regional cooperation of CJK trade in services.
The third chapter analyzes the basis for cooperation of China-Japan and South Korea trade in services. It analyzes the overall situation of trade in services and development features, intra-industry trade in special service sectors, and uses the TC index and RCA index to analyze the competitiveness. Through a combined analysis of three aspects, we realize their advantages and disadvantages, supply and demand conditions.
The fourth chapter analyzes the three countries involved in the practice of regional trade in services, exploring the motivation of cooperation. Through comparison of regional trade in services agreement signed by the three countries, we dentify areas in which they are willing to cooperate, determine their degree of openness, and to design an institutional arrangement for service trade cooperation among the three countries.
The fifth chapter analyzes the trade effect of liberalization and cooperation of CJK trade in services. Through establishing the gravity model, it analyzes the trade creation effect when CKJ signed a free trade in services agreement. The part also assessed potential export of trade in services among the three countries after building CKJ free trade area.
The sixth chapter mainly analyzes China's strategic choice in the process of regional trade in services cooperation, proposes some policies and suggestions on institutional arrangements, the opening sector and the level of commitment.