China and Korea Sign Free Trade Agreement

On June 1 2015, China and Korea officially signed the Free Trade Agreement (FTA). Over 90% of products previously subject to the full import tariffs of these two countries will now become tariff free after a transition period.

According to the FTA, oral care products including toothpaste will be exempted from the current 10% import tariff within ten years after implementation. The import tariff for shampoos, bath products and skin care products will decline by 20%-35% within five years. 15% import tariff levied on beauty instruments will be also eliminated.

The agreement is the most significant of its kind to date and the increase in bilateral trade volume is expected to exceed $300 billion.

Reference:

http://www.cs.com.cn/ssgs/hyzx/201506/t20150602_4725732.html