The textile and garment exporters from Nantong, Jiangsu province, will save annual tariff costs of $40 million thanks to a free trade agreement (FTA) deal between China and South Korea, which aims to increase bilateral trade, the zgnt.net reported on Feb 25.

The FTA deal, currently inked only in English, will officially be signed after being translated into native languages of the two countries. With the implementation of the deal, South Korea will apply zero-tariff preference for most textile and garment products from China.

Chinese textile and garment exports to South Korea only enjoy an average tax exemption of 25 percent under the current Asia-Pacific Free Trade Agreement.

Under the FTA, South Korea will eliminate tariffs on 79 percent of all products it imports from China within 10 years of the implementation of the deal in return for China removing tariffs on 71 percent of all South Korean products it imports.

Consequently, South Korea will eliminate tariffs on 92 percent of all imported goods from China within 20 years of the implementation, while China will abolish tariffs on 91 percent of all imported South Korean products.

Edited by Mevlut Katik