This article is excerpted from the 5 August 2010 edition of “The New York Times”.

BEIJING — South Korea’s ambassador to China said in an interview published Thursday that his nation was likely to open free trade talks with Beijing next year. The negotiations could be a first step toward a three-nation trade zone including Japan, which would rival the European Union and the North American Free Trade Agreement in size.

In an interview with China Daily, the state-run English-language newspaper, Yu Woo-ik cautioned that a free trade pact with China would face deep skepticism from South Korea’s farming, fishing and forestry industries, which fear being undercut by cheap Chinese imports.

But the ambassador also was quoted as saying that the agreement would be in South Korea’s long-term interests. The Chinese have been striking similar agreements with some of South Korea’s economic competitors, such as Taiwan and countries in Southeast Asia…

Two-way trade between China and South Korea amounted to $141 billion last year; South Korea sends a quarter of its exports to China. The two nations have said they will boost their bilateral trade to a $300 billion a year by 2015.

South Korea and China completed a feasibility study for a possible free trade accord in May, and at the time they agreed to have more consultations on agriculture, fisheries and other sensitive areas before deciding to begin formal negotiations. Such consultations have not begun, though South Korean officials expect them to start soon…

China has been more aggressive in pursuing a free trade deal with South Korea than vice versa, South Korean officials said… 

Were South Korea and Japan to reach a trade accord, the alliance would remove tariff barriers between three of the four largest Asian economies…