S Korea finds economic breakthrough opportunities in FTAs
Xinhua 2009-02-20
S Korea finds economic breakthrough opportunities in FTAs
SEOUL, Feb. 20 (Xinhua) — South Korea’s chief free trade negotiator said free trade is essential to break through the current economic slump, South Korea’s Korea Herald said Friday.
As an increasing number of nations turn to protectionism amid the global economic recession, the export-based South Korean economy needs to aggressively seek for free trade agreement (FTA) opportunities in a bid to strengthen economic alliance with its trade partners, Chief Negotiator Lee Hye-min said.
"An FTA can save trading partners against protectionist measures like anti-dumping duties and other non-tariff barriers," Lee said.
"A 1 percent reduction in tariffs through an FTA would at least help lower production costs by 1 percent," the official said.
Stressing her firm faith in FTAs, Lee said the FTA negotiations with the European Union are now approaching the final phase and will reach a conclusion by January 2010.
The official final round of free trade talks with the EU is scheduled to be held on March 23 and 24 in Seoul.
South Korea is also pursuing an FTA with the Gulf Cooperation Council (GCC), with which the government is waiting for a second round of talks on March 9 and 10.
The GCC is an organization made up of six Arab states, such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
"Both sides are looking to reaching a deal within this year," Lee said.
Lee said Korea has a lot to gain from a timely conclusion with the GCC not only as it is able to secure a stable channel for natural resources but also as the council is now in process of holding FTA talks with the EU, China and Japan.
As for the ratification of a South Korea-U.S. FTA, the official said that the office of the United States Trade Representative has to be elected first to put an end to the long-held issue.
"As U.S. Secretary of State Hillary Clinton pays a two-day visit to Seoul, the issue of the free trade agreement between the two sides is expected to be discussed between the U.S. secretary and the South Korean foreign minister," she added.
