Korea, EU Clash Over Technical Standards on Cars at FTA Talks
Korea Times
Korea, EU Clash Over Technical Standards on Cars at FTA Talks
21 November 2007
By Ryu Jin, Staff Reporter
Free trade negotiations between South Korea and the European Union have hit a snag as both sides failed to make headway over auto-related technical standards, one of the stickiest issues in their trade talks.
"The EU side made it clear that it cannot accept our revised proposal on auto-related technical standards," Kim Han-soo, Seoul’s chief negotiator for the talks, was quoted as saying after ending the second day of the five-day fifth round of negotiations. "Back in Seoul, we have to find out whether there are any viable options left for us."
After reaching an accord with the United States earlier this year, Seoul has held four rounds of negotiations with Brussels on a free trade agreement that could provide Asia’s third-largest economy with a commercial bridge to Europe.
But the negotiations moved at a snail’s pace as both sides remained reluctant to accept each other’s demand on auto trade and auto-related technical standards.
Auto trade and auto-related technical standards, among other issues, are regarded as a major hurdle for the trade negotiations. Brussels wants Seoul to cut regulations for European carmakers by applying international standards instead of alternative domestic rules. But Seoul has reiterated its stance that it cannot accept the EU demand.
On Monday, Kim said Seoul’s latest proposal for the issue includes a quota and a grace period for cars imported from the European carmakers. Ignacio Garcia Bercero, Brussels’ chief negotiator for the talks, also told reporters that auto-related regulations are a "very fundamental issue" for the negotiations. "I hope this week’s negotiations will make progress," he said.
South Korea sold 74,000 autos worth $9.1 billion in Europe last year while buying only 15,000 vehicles worth $1.6 billion. The country’s tariff rate on cars is 8 percent, compared with 10 percent in the EU.
The 27-nation economic bloc is demanding that South Korea cut tariffs on cars and other products to the same extent that it did in the trade deal with the U.S.
Since the first round started in May, the EU has offered to eliminate or phase out all its import tariffs on South Korean goods within seven years, and remove tariffs on 80 percent of goods within three years after the deal comes into force.
