Korea seeks FTAs with S. American nations
Korea Times | 11-18-2008
Korea Seeks FTAs With S. American Nations
By Jung Sung-ki
Staff Reporter
President Lee Myung-bak called Tuesday for the launch of negotiations on a free trade agreement (FTA) between South Korea and the Southern American Common Market, called MERCOSUR, involving Argentina, Paraguay, Uruguay and Brazil.
South Korea and MERCOSUR countries have completed a joint feasibility study on the FTA, but have yet to open negotiations. A successful conclusion to the talks will further upgrade bilateral cooperative relations,'' Lee was quoted by Yonhap news as saying during a meeting of Korean and Brazilian business leaders in Sao Paulo, Brazil.
In a separate interview with a Peruvian newspaper, Lee said he would declare the beginning of free trade negotiations with Peru.
Lee arrived in Sao Paulo earlier in the day for a four-day official visit after attending the Group of 20 summit in Washington, D.C. He plans to hold a summit with Brazilian President Luiz Inacio Lula da Silva today.
The idea of a Korea-MERCOSUR Free Trade Agreement (FTA) was first floated during former South Korean President Roh Moo-hyun's visit to Brazil in 2004. MERCOSUR represents a total population of 190 million people living in an area larger than Europe.
Lee stressed the need to deepen economic and industrial cooperation between South Korea and Brazil.While in Brazil, I will establish a Korea-Brazil industrial cooperation committee to promote business cooperation and investments between the two countries. Through the committee, both sides will also set up a bilateral industrial cooperation fund and center,’’ he said.
The President highlighted three broad sectors ― mineral resources and plant construction; oil development and shipbuilding; and the biofuel, auto and green industries ― as targets for proposed Korean-Brazilian cooperation.
The South Korean and Brazilian economies are compatible,'' he said.Closer bilateral cooperation could create enormous synergy.’’
The flex-fuel vehicles, which are powered by Brazilian bio-ethanol, might be promising for bilateral cooperation, together with solar and wind power generation, light-emitting-diodes, hydrogen fuel cells and liquefied gas and coal, Lee added.
Lee expected the combination of Brazil’s abundant resources, including iron ore and uranium, and South Korea’s competitiveness in plant industries, such as electrical power, steel and petrochemicals, to generate strong synergistic effects, according to Yonhap.
We wish to expand a package cooperation on the basis of Brazil's abundant natural resources and Korea's competitiveness in power generation, steel, petrochemicals and other plant businesses,'' he said.Brazil has the 10th-largest oil reserves in the world and possesses advanced technology in deep-sea oil exploration. Thus Brazil and Korea, the world’s largest shipbuilder with top technology in oil exploration ships, can engage in win-win cooperation.’’
Brazilian participants at the meeting asked Lee and South Korean companies to consider participating in the Brazilian high-speed railway project.
Lee met with Jose Serra, the governor of Sao Paulo state, later in the day to discuss closer cooperation in ethanol and other eco-friendly energy resources.
Lee said, ``The Brazilian technology to produce ethanol is invaluable from the perspective of worldwide efforts to prevent global warming and promote clean and new renewable energy. The combination of Brazilian resources and technologies and Korean IT and environmental technology will be mutually beneficial.’’
Lee travels to Brasilia, the capital city of Brazil, Tuesday.
At the G-20 summit, Korea and Brazil were selected with Britain as a troika of moderator countries to play a leading role in preparing the policy agenda for the next G-20 summit, slated for April.
Following his Brazilian trip, President Lee plans to visit the Peruvian capital of Lima for a state visit before the APEC forum.
