27 Oct '11, 10am

US-Korea FTA to impact Taiwan exports

TAIPEI: Taiwan is feeling the heat from South Korea's Free Trade Agreement (FTA) with the US. Under that deal, more than US$11.5 billion worth of the island's exports to the US market are likely to suffer as a result. That's because 70 per cent of the island's exports are the same as South Korea's. Industries, especially textiles, machinery, rubber and chemicals would bear the brunt of the impact. Analysts fear the negative ramifications may be even greater. "South Korea is striving to become regional trade centre in East Asia. Based on that objective, it will try to entice more foreign capital and thus generate more trade. This will affect foreign investments to Taiwan and undermine the island's competitiveness," said Professor Tung Chen Yuan at National Chengchi University. Some analysts, however, believe the island's preferential trade deal with China will provide some ...

Full article: http://www.channelnewsasia.com/stories/economicnews/view/...

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