SEOUL, KOREA - With the signing of the China-Korea free trade agreement, exports of medical devices, small home appliances, and farm equipment by small- and medium-sized manufacturers will likely be boosted. Even without the FTA, China is already the second largest export destination after the United States for medical devices. Last year, Korea's medical device makers exported US$231.46 million to China, accounting for 9.8 percent in total of $235.69. The major export items included sonography systems and dental equipment.
Once the tariff duties on these items, currently estimated at an average of 4.3 percent, are eliminated, Korean medical device exporters expect a high-speed growth in the market of 1.3 billion population.
Manufacturers of home appliances are also excited about the prospect of increasing their exports in China. If the current tariff duties of 10 percent are abolished, they will have price competitiveness against rivals.
Farm equipment will also benefit from the tariff-reduction effect. Until now, most Korean agricultural machine makers have found it hard to crack the Chinese market as there are many low-cost Chinese farm equipment suppliers. Even Daedong Industrial, Korea's largest farm equipment maker, has languished in China for seven years without much result to show for since its entry in 2007. A Daedong official said, "Once the tariff on farm equipment disappears, we will have a shot in the Chinese market."
Article provided by The Korea Economic Daily
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