Trade group urges early implementation of FTAs with U.S., EU
Yonhap News, Korea
Trade group urges early implementation of FTAs with U.S., EU
25 April 2011
SEOUL, April 25 (Yonhap) — A local trade group urged the government Monday to quickly implement the country’s free trade agreements (FTAs) with the United States and the European Union, saying the country is still far behind the global average in terms of FTA-generated trade.
The call comes amid criticism from the country’s opposition parties that the government was rushing to put the new FTAs into effect.
The opposition has so far successfully blocked a government bill on the ratification of the FTA with the European Union, signed late last year, despite an earlier agreement between the South Korean government and the European Commission to start implementing the trade agreement from July 1. The European Parliament ratified the Korea-EU FTA in February.
According to a report by the Korea International Trade Association (KITA), South Korea’s trade generated by FTAs accounted for only 14.8 percent of its entire trade in 2009, far below the global average of 49.2 percent.
"Despite claims that the speed at which our country signs FTAs is too fast, this confirms the proportion of FTA-prompted trade in our overall trade is still far behind," the report said.
South Korea signed its first FTA with Chile in 2003 and has since signed free trade deals with six other countries, including India, Singapore and the United States.
The Korea-U.S. FTA, however, has been put on ice as it awaits parliamentary approval in both countries since being signed nearly four years ago.
"Once the country’s new FTAs already signed with the EU, the U.S. and Peru are implemented, the proportion of FTA-prompted exchanges in our trade will rise to 35.1 percent," the KITA report said. "We will only reach the global average once we implement all our new FTAs currently under negotiation."
