Tariffs cuts for 691 items bound for China

The Bangkok Agreement regarding lower tariffs between member countries came into effect as of January 1, 2002. As China joined the agreement, Korean exports will become more competitive with tariff cuts for 691 items China.

The Ministry of Finance and Economy revealed that China lowered tariffs for 691 items by 3.6% on average, from 19.3% to 15.7%. Tit-for-tat, China will receive an offer of 30% lower tariffs on 250 items from the Korean government.

The Bangkok Agreement was enacted January, 1976 between Korea, Bangladesh, India, Laos, and Sri Lanka.

An official from MOFE said, “With the entrance of China to the Bangkok Agreement, it has become responsible for 6% of world trade, or about 652.8 billion dollars. This will be helpful in encouraging other Asian countries to join, too.”