seventh week article pos

Asian giants strike deal to start talks on three-way trade pact  

 China, Japan and South Korea area planning to make a three-way trade pact and to agree on a reciprocative investment treaty.  The larger future goal is that of a free trade agreement.  South Korea's president stated that these three countries are essential to helping the global economy economy recover.  Partly because of economic and political disputes between the countries, the process will probably be lengthy.  If the South Korean president is correct, then Turkey will benefit from this East Asia trade agreement.  Since China, Japan, and South Korea make up such a large market of suppliers of goods and services, the agreement may help countries that import, like Turkey, by making the goods and services cheaper.  Free trade generally has a trend of lowering costs by competition.  

 The Wall Street Journal wrote,  

The three leaders also signed a trilateral investment agreement, which Wen described as "the first important legal document" between the three countries' economies. The agreement will provide a legal framework to "assure investors of the three countries...when they suffer damage in their host countries," South Korea's Lee said. 

This increase in safe investment will prove to help the economies in the future by  encouraging investment. When investment goes up, GDP goes up.  The WSJ also reports that China is also making free trade agreements with other countries globally.  This global economy should benefit Turkey if it is on board.  If Turkey is a country that stays out of free trade agreements like these, I think it will fall behind as others benefit from lower costs.

 

http://online.wsj.com/article/SB10001424052702304371504577402773076428202.html

http://www.hurriyetdailynews.com/asian-giants-strike-deal-to-start-talks-on-three-way-trade-pact.aspx?pageID=238&nID=20609&NewsCatID=344