South Korea, EU to hold 3rd round of free trade talks in Brussels
Yonhap | 2007/09/14
South Korea, EU to hold 3rd round of free trade talks in Brussels
By Park Sang-soo
SEOUL, Sept. 14 (Yonhap) — South Korea and the European Union (EU) are to launch their third round of negotiations in Brussels next week aimed at framing an ambitious free trade agreement that could provide the Northeast Asian country with a crucial commercial bridge into Europe, South Korea’s Ministry of Foreign Affairs and Trade said Friday.
Negotiators from the two sides will hold a series of meetings from Monday to Friday to thrash out complex tariff and non-tariff issues at the meeting.
The first round was held in May in Seoul after South Korea completed free trade agreement negotiations with the United States in early April. The second round was held in Brussels.
Both sides already exchanged initial tariff proposals. 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 South Korean-made goods within three years after a deal comes into force.
South Korea said last week it decided to accept the EU’s proposal, a step back from its initial offer calling for the gradual opening of South Korean markets, with tariffs being levied on some products for up to 10 years.
Seoul also said it would remove tariffs on roughly 60 percent of EU goods as measured in value in three years.
Seoul plans to liberalize most of the 250 farm goods discussed at the talks, while requesting gradual market opening to reduce the negative impact on farmers’ livelihoods.
Autos are one of big issues for South Korea, which sold 74,000 units worth US$9.1 billion in Europe last year, while buying only 15,000 vehicles worth $1.6 billion. South Korea’s tariff rate on cars in 8 percent, while those for the EU stand at 10 percent.
Another sticking point concerns South Korea’s request that the proposed free trade agreement cover goods made at a South Korean-built industrial zone in the North Korean city of Kaesong.
If implemented, the FTA would be the biggest such commercial agreement for South Korea, Asia’s third-largest economy, surpassing an agreement signed in June with the U.S.
The tentative free trade agreement between South Korea and the U.S. must be ratified by the South Korean National Assembly and the U.S. Congress.
No deadline was set for the South Korean-EU free trade talks, but South Korean officials say they hope to reach a deal by the end of this year.
The EU is the second-largest trading partner of South Korea, with $79 billion in bilateral trade in 2006. Unofficial studies suggest an FTA would boost that figure by as much as 40 percent in the long run.
The tentative free trade agreement between South Korea and the U.S. must be ratified by the South Korean National Assembly and the U.S. Congress.
No deadline has been set for the South Korea-EU FTA, but some in Seoul said they hope to seal a deal within the year.
The EU is South Korea’s second-largest trading partner after China, with bilateral trade reaching $79 billion in 2006. Unofficial studies suggest an FTA would boost that figure by as much as 40 percent in the long run.
The EU is also the largest foreign investor in South Korea, with $40.4 billion invested as of end of 2006.
