S. Korea, EU set to launch high-level free trade talks

SEOUL, Jan. 19 (Yonhap) -- Trade ministers from South Korea and the European Union (EU) are set to hold a meeting later Monday to iron out divisive issues related to a free trade deal, officials said.

Since signing a free trade agreement (FTA) with the United States in 2007, South
Korea has held seven rounds of negotiations with the EU in a bid to gain greater
footing in the 27-nation economic bloc, South Korea's second-largest trading
partner after China.
During a two-day meeting, South Korean Trade Minister Kim Jong-hoon and his EU
counterpart Catherine Ashton will attempt to resolve contentious issues such as
auto trade and rules of origin.
"This week's meeting is very crucial as both sides are seeking to resolve some
sticky issues," said an official at the Trade Ministry.
A date for the eighth round of talks has not yet been set, but the trade ministry
said earlier that both sides would be able to strike a deal within the first
quarter of the year.
The negotiations have made little headway as both sides have been reluctant to
accept the other's demands on tariff reductions, rules of origin, auto trade and
auto-related technical standards.
But at last month's meeting between chief negotiators from both sides, the two
countries made significant progress, according to the officials.
Bilateral trade came to US$93.07 billion in 2007, and some 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 outstanding
investment reaching $43.40 billion at the end of 2007.
South Korea is seeking to sign FTAs with as many countries as possible in an
effort to strengthen its export-oriented economy. Currently, South Korea has FTAs
with Chile, Singapore and the European Free Trade Association, as well as a
partial pact with the Association of Southeast Asian Nations.
Seoul is also seeking similar trade deals with Canada, India and Mexico.
sam@yna.co.kr
(END)