Wen urges start to FTA talks

BEIJING - Premier Wen Jiabao urged an early start to negotiations on a bilateral free trade agreement (FTA) between China and the Republic of Korea (ROK) during a meeting with visiting ROK President Lee Myung-bak on Tuesday.

Wen met Lee in Beijing for the first time since the death of Kim Jong-il, former leader of the Democratic People's Republic of Korea (DPRK), on Dec 17.

Lee said the signing of a bilateral FTA and boosting cooperation among East Asia countries would serve the common interest of both nations.

Meanwhile, Wen said China, Japan and the ROK are expected to launch negotiations on a trilateral FTA "within this year", and the three countries should also work closely on advancing the establishment of a free trade zone including the Association of Southeast Asian Nations (ASEAN), China, Japan and the ROK, known as ASEAN+3.

Deepening economic convergence in East Asia is of great strategic significance, Wen said, adding that Beijing and Seoul should take the opportunity to beef up communication and coordination.

Analysts said China and the ROK are reciprocal in bilateral trade, and China will benefit much from exchanges in technology.

Huang Youfu, director of the Institute of Korean Studies at Minzu University of China, told China Daily that the bilateral FTA negotiation will progress rapidly because China is the ROK's largest trading partner, and the negotiation is one of Seoul's "top priorities".

The ROK is China's third-largest trading partner behind the United States and Japan.

However, the potential for some stumbling blocks ahead should also be taken into account. "Seoul is also facing mounting pressure from domestic farmers due to Chinese agricultural products' comparative advantage in price and trade volume," Huang said.

During the meeting, Wen discussed the 20 years since the establishment of bilateral diplomatic relations in 1992.

During that time, Beijing and Seoul have elaborated on cooperation in various fields and dimensions, promoted the economic and social development of both countries and contributed to the prosperity and peace of Asia, he said.

"Leaders from Beijing and Seoul enjoy mutual trust of a high level, and bilateral relations boast a sound basis," said Lee, adding that both countries have seen fruitful achievements in bilateral exchanges and cooperation.

Wen said that given recent significant changes in regional and international situations, both sides are expected to maintain a good neighborly friendship, boost strategic mutual trust and enhance common interests to ensure the lasting, stable and healthy development of bilateral relations.

Seoul would like to work with Beijing toward achieving the shared goals, with both sides enjoying greater prospects for stronger bilateral ties, Lee said.

Both sides exchanged views on the security situation in the East Asia region.

"In the event of urgent issues on the Korean Peninsular, Seoul should talk to Beijing more in addition to exchanging views with Washington, otherwise boosting mutual trust will not be an easy task," Huang said.

Lee held talks earlier in the day with prominent figures engaged in boosting bilateral friendship, including former Chinese vice-premier Li Lanqing. He also addressed representatives of leading entrepreneurs from both countries during a welcoming lunch party.