List of agreements being negotiated. Agreements that have so far been discussed only in the absence of formal action by the parties concerned are not mentioned. The Free Trade Agreement between China and Iceland came into force on 1 July 2014. Iceland is the first developed European country to recognize China as a complete market economy and the first European country to negotiate a free trade agreement with China. List of agreements between two states, two blocs or one bloc and one state. Note: Any customs union, every common market, any economic union, the Customs and Monetary Union and the Economic and Monetary Union are also a free trade area. Turkey has bilateral and multilateral agreements with: China-ASEAN-FTA (CAFTA) is the first free trade agreement of China`s foreign negotiations and the largest free trade area. CAFTA has strongly encouraged the long-term stable and rapid development of bilateral trade and economic relations. Trade between China and South Korea increased from US$6.4 billion in 1992, when the two countries established diplomatic relations, from $6.4 billion in 2014 to $235.4 billion. China has been South Korea`s largest trading partner since 2004. South Korea is China`s fourth-largest trading partner since the same year, China has 11 free trade agreements under negotiation and three more are under review.
Many of them are relatively small, although they are useful for companies in the countries that have them, Chile, Costa Rice, Iceland and Peru. The Pakistani agreement is often used in bilateral Sino-pak relations, which are obviously strong, with Pakistan being the main beneficiary of Chinese foreign investment in Southeast Asia, while China also has an interesting free trade agreement with Switzerland, signed in the middle of last year and expected to come into force later in 2014. In particular, Switzerland is not a member of the EU, although it is a member of the European Free Trade Association and has a bilateral agreement with the European Union. Switzerland is one of the few European countries to benefit from a trade surplus with China, and the agreement was China`s first with a continental nation. Switzerland`s trade surplus with China amounted to about $23 billion in 2012, thanks in part to sales of luxury goods such as watches and chemicals.