S. Korea, EU near free trade deal: officials

SEOUL, March 16 (Yonhap) -- South Korea and the European Union have virtually
wrapped up a free trade agreement and will likely reach a deal on the accord next
week, officials said Monday.
The two sides were set to hold an eighth round of negotiations on March 23-24 in
Seoul in what is expected to be their final round of talks, according to the
South Korean officials.
South Korea, Asia's fourth-largest economy, and the EU, the world's
single-largest economic bloc, started the talks in May 2007, but differences over
industrial tariffs and other sensitive issues have limited progress.
"The eighth round should be the final round," said an official at the South's
Ministry of Foreign Affairs and Trade.
According to multiple officials, South Korea and the EU agreed to eliminate or
phase out tariffs on 96 percent of EU goods and 99 percent of South Korean goods
within three years.
As for auto trade, one of the most sensitive issues, the two sides agreed to
eliminate tariffs on cars with engine displacement of over 2.5 liters within
three years. For cars with engine displacement of fewer than 2.5 liters, they
agreed to abolish tariffs within five years, officials said.
Currently, South Korea imposes an eight percent import duty on European cars,
while the EU imposes a 10-percent duty on South Korean cars.
Separately, the Dong-a Ilbo reported earlier in the day, citing South Korean
government officials, Brussels suggested to Seoul that they officially announce
their free trade deal at a meeting of G20 countries in London early next month.
The South Korean government was "positively" reviewing the EU's offer, the
newspaper reported.
The EU was South Korea's second largest trading partner after China last year,
with two-way trading reaching about $80 billion.
South Korea reached a free trade deal with the United States in 2007, shortly
before it launched the talks with the EU.
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