A recent New York Times article reports that China and South Korea are planning on opening free-trade negotiations in 2011 which may ultimately lead to a three-nation trade zone with Japan which would rival the European Union and the North American Free Trade Agreement. However, some South Korean industries (e.g. farming, fishing, etc.) are likely to object due to fear that China will underprice them.
The United States is also eager to enter into a free trade agreement with South Korea although Congress has so far refused to ratify it due to pressure from the beef and auto industries which may not be confident they can effectively compete with South Korea.
Whether a 3-way trade pact between China, South Korea and Japan will become reality is by no means certain, but if it does, the result of furthering trade with the 3 of the 4 biggest Asian economies and could be dramatic. China has the largest GDP in Asia, followed by Japan, India and South Korea. The lessening of trade restrictions between these Asian nations and the resulting increase in trade will even further increase Asia's growing economic power in the 21st century.
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