Korea, China to Restrain Anti-Dumping Actions

22/04/2009 12:00 - 633 Views

South Korea and China reached a consensus Saturday that the two countries will tone down protectionist moves in their bilateral trade, including anti-dumping measures.

The two Far Eastern Asian countries came up with the common stance against rampant protectionism in global trade after Korea's Trade Minister, Kim Jong-hoon, held talks with China's Commerce Minister Chen Deming during the Boao Forum for Asia, which ended Sunday in Hainan Province, China.

Amid faltering bilateral trade volume in the wake of the global slowdown, they agreed to make joint efforts to keep on track, Minister Kim said.

``It's been agreed that both governments need to stand against protective trade policies and try to keep their bilateral relations going,'' Kim was quoted as saying by Yonhap News Agency.

The agreement came when the countries were at odds over an ongoing recent anti-dumping case. In January, Beijing notified Seoul of a probe into six local petrochemical firms on exports of terephthalic acid, a commodity chemical used as a material for clothing and plastic bottles.

Trade between China and Korea is currently on the rebound, after plummeting over 30 percent year-on-year in the first month of 2009. China is Korea's biggest exports destination, taking up 20 percent of outbound shipments.

``The governments' willingness counts in dealing with anti-dumping actions. Seoul and Beijing agreed to be more careful and collaborative in trade,'' Kim said.

Furthermore, the countries decided to work together for the completion of the Doha Development Agenda by the World Trade Organization.

Kim, however, forecast it would take more time for the countries to initiate talks on a free trade agreement.

``The key to the issue is how both countries tackle their sensitive industries ? agriculture for Korea and finance, petrochemical and intellectual property rights for China,'' he said. ``It appears China is not in a hurry to make a pact.''

The Korea-China FTA talks are still in their infancy. The two countries had agreed on starting a joint study on the deal during the ASEAN+3 Summit in 2004, but there has been little follow-up.

Leaders of Korea and China announced last year that they'd agreed to actively review the promotion of the FTA ``in a bilateral beneficial way'' in a joint statement, after President Lee Myung-bak paid a visit to China and held a summit with Chinese President Hu Jintao.

Delegates discussed various issues at this year's Boao Forum, including the effect of the global financial crisis on Asia, the region's role in weathering the challenges effectively and reforming the global economic system.

Over 1,500 political leaders, scholars and businesspeople gathered on the island resort in Southern China for the annual event.

By Kim Hyun-cheol

hckim@koreatimes.co.kr

Staff Reporter

source: www.koreatimes.co.kr