S Korea’s finance minister hints at FTA talks with China
2007/04/04
S. Korea’s finance minister hints at FTA talks with China
SEOUL, April 4 (Yonhap) — South Korea’s finance minister said Wednesday that the government may push to strike a free trade agreement (FTA) with China after it wraps up negotiations with the European Union (EU).
"South Korea cannot go against the tide of free trade amid intensifying global competition," Minister of Finance and Economy Kwon O-kyu told reporters. "Since it has sealed an FTA with the U.S., it is crucial for South Korea to sign such a deal with China."
Seoul and Washington signed the deal Monday, promising to knock down tariff and non-tariff barriers between them. The deal is expected to boost two-way trade by up to 20 percent from last year’s US$74 billion.
Kwon’s comment was seen as the government’s intention to launch FTA talks with China as soon as negotiations for an FTA with the EU are completed.
South Korea and the EU plan to launch formal talks in early May on forging the trade deal by the year’s end. Trade volume between the two reached US$70 billion last year.
According to the minister, negotiations for a South Korea-EU FTA can be wrapped up quickly, as the two have few sensitive items between them.
South Korea’s top economic policy chief also assessed the recent South Korea-U.S. FTA negotiations favorably.
"In the case of the South Korea-U.S. FTA, South Korea benefited more from the deal than the U.S. in terms of market access," Kwon said. "South Korea’s car, textile and industrial goods exporters will benefit much from the deal."
Overall, the minister evaluated the negotiations favorably, as South Korea was able to defend sensitive items while opening up key market areas.
"The overall quality of the FTA negotiation can be seen as ’A plus’ as it defended areas that needed to be protected and opened up those that needed further opening," he said. "The negotiations in the service sector and a few sensitive ares, however, fell below the government’s expectation."
South Korea’s gross domestic product (GDP) is expected to grow 2-7 percent in seven years after the FTA with the U.S. takes effect following the approval each nation’s legislative body, the minister said.
