Sejong , March 27 ( Yonhap) - The trade volume of South Korea has more than doubled in the last 10 years since the country implemented its first with Chile free trade agreement ( FTA ) , said Thursday a Local commercial organization.
The South Korean FTA with Chile, which came into force on April 1, 2004 , had caused , at that time, a wide range of concerns about the possible consequences for farmers and the agricultural market of the country , along with many doubts about your benefits.
Those concerns and doubts have not disappeared completely, even though the country has signed and implemented since then , 8 other bilateral and multilateral FTAs involving more than 45 countries .
The International Trade Association of South Korea ( KITA , according to its acronym in English ) states that the growth of trade volume of the country during the last 10 years can confirm , at least , the positive impact of the FTA on trade .
In 2003 , the total trade volume of South Korea was 478,300 million. After 10 years and nine free trade agreements , trade volume reached last year , more than 1.07 billion, breaking the mark of a billion dollars for the third consecutive year.
The volume of bilateral trade between South Korea and Chile quadrupled , about 1,570 million to nearly 7,120 million in the same period.
The trend can also be observed in the agricultural sector.
Total exports of agricultural and fishery products in the country more than doubled , from about 25.4 million in 2004 to more than $ 54.8 million in 2012, while imports also grew from 22.4 million to $ 51.9 million during the same period, according to the Ministry of Agriculture, Food and Rural Affairs.
However, many still remain skeptical about the supposed benefits of the FTA.
" In economics , gross domestic product (GDP ) grows when there is a trade surplus , but the trade deficit ( with Chile) has expanded since NAFTA South Korea -Chile entered into force ," said an expert.
The government said that not all the benefits of an FTA can be measured in numbers.
"The growth in the volume of trade is only part of the benefits of an FTA , which could provide much greater benefits in terms of improved market conditions for consumers, provided by the declines in prices and intensified competition among local and foreign producers , "said a government official , who requested anonymity.
In late 2013 , South Korea had FTAs with 46 countries that collectively generate 55 percent of global GDP and as said earlier, the Ministry of Commerce , Industry and Energy , the country seeks to expand its called trade territory by TLC to 71 percent of world GDP in 2017.
For this, the country is currently negotiating eight new trade pacts .
