South Korea and China concluded 30-months of negotiations on a free trade pact on Monday, a deal expected to open a new chapter in the economic cooperation of the two countries.

The announcement was made during a talk between leaders of the two countries held on the sidelines of the Asia-Pacific Economic Cooperation summit currently being held in Beijing.


The signing of the free trade deal took place after the summit in the presence of South Korean President Park Geun-hye and her Chinese counterpart Xi Jinping, officials said.

The two sides agreed on a total of 22 chapters covering most economic sectors, though an agreement on rice has not yet been negotiated.

Park arrived in Beijing on Sunday afternoon to attend the annual meeting of leaders from 21 Pacific Rim countries.

Her meeting with Xi was in the spotlight as they were widely expected to announce the conclusion of the FTA deal during the talks.

During a previous meeting in Seoul four months ago, Park and Xi agreed to conclude FTA negotiations this year.

Trade ministers of the two countries held a last-minute talk to reach a deal before the summit between Park and Xi.

The main bone of contention was tariff cuts. South Korea had requested a wider range of cuts on industrial products, while China made similar demands for products from farms and fisheries.

Under the deal, South Korea, Asia’s fourth-largest economy, is expected to see its annual trade with China, the world’s second-largest economy, increase by $3.5 billion, according to officials at the Finance Ministry.

The deal with China marks South Korea’s 13th free trade pact. China is South Korea’s largest trading partner.

By Cho Chung-un, news reports (christory@heraldcorp.com)