“Free trade is a system in which goods, capital, and labor flow freely between nations, without barriers which could hinder trade process.”(What is free trade, 2013) The Chinese government now has 16 FAT partners in the world like the Asean, Chile, Pakistan, New Zealand, Singapore, Peru and Costa Rica. This essay will explain the possible benefits and the problem for china participate in more free trade agreements and use some current examples.
1. Free trade allows unrestricted circulation of goods of various countries and regions, such available on the market an array of consumer goods, and free trade is a zero tariff, turns out to be inexpensive and allow consumers to income. Such as Hong Kong, China, is a free trade port, known as the shopping paradise is for this reason. 2. Ultimately the free trade agreement promoted the development of international trade by reducing transaction costs and circulation costs, through trade liberalization and facilitation, by promoting the new FTA. 3. Free trade agreements to promote international investment, and serves to optimize the effect of the world's industrial structure and resource allocation.
The developing countries want the benefits from free trade agreements is generally greater market access opportunities. So that developing countries can export more to the advantage of products, especially agricultural products and labor-intensive manufactured goods. However, even if the free trade agreement to reduce tariff in developing countries still encounter other obstacles. Sometimes it will be more to limit the exports of developing countries in order to ensure the smooth implementation of the free trade agreement, for example, usually there will be related to Origin provisions. Even the signing of a free trade agreement, developed countries still outside the agreement, some of the legal, technical standards will be...