In a landmark deal between Asia's largest and fourth largest economies, China and South Korea have signed a free trade agreement (FTA) under which more than 90 per cent of all South Korean and Chinese goods currently being traded will be free of tariffs immediately or within 20 years of the pact taking effect.

It's quite a prospect – imagine if Ireland was able to sign a deal like this with China? China is the world's largest exporter, while South Korea is the seventh biggest.

While China's ideological links to North Korea make the political headlines, in economic terms it is vital to the South and is its top trading partner, as well as its biggest export market. Two-way trade was worth €211 billion in 2014.

South Korean president Park Geun-Hye told China's Xi Jinping in a letter that the deal was an "historic milestone" that would further cement relations.

What is particularly interesting is the focus on the small and medium-sized firms, as the deal will allow SMEs greater access to the Chinese consumer market.The trade ministry in Seoul believes it could create more than 50,000 jobs in South Korea.