ID :
51138
Wed, 03/18/2009 - 12:16
Auther :
Shortlink :
https://www.oananews.org//node/51138
The shortlink copeid
S. Korea, EU to declare free trade deal in early April: official
SEOUL, March 18 (Yonhap) -- South Korea expects to declare a free trade deal with the European Union early next month after wrapping up almost two years of negotiations, a high-level trade official here said Wednesday.
South Korea, Asia's fourth-largest economy, and the EU, the world's
single-largest economic bloc, began the talks in May 2007 but differences over
industrial tariffs and other sensitive issues have hampered progress.
The two sides will hold their eighth and final round of negotiations from March
23-24 in Seoul, said Lee Hye-min, deputy minister for trade and chief negotiator.
"Next week's round of negotiations will be the final," said Lee. "Based on the
negotiations, trade ministers from both sides will meet early next month to
finalize, and may declare the deal."
The time and place for the trade minister-level meeting has not yet been fixed,
he added.
Seoul and Brussels have agreed to eliminate or phase out tariffs on 96 percent of
EU goods and 99 percent of South Korean goods within three years. They have also
agreed to abolish tariffs on all industrial goods within five years after the
deal takes effect, according to trade officials.
One of the most sensitive issues has been auto trade. After much wrangling, the
two sides agreed to eliminate tariffs on cars with an engine displacement of over
2.5 liters within three years. Those for smaller cars will be lifted after five
years.
South Korea currently imposes an 8 percent import duty on European cars, while
the EU imposes a 10 percent duty on autos from South Korea.
Lee said the two sides have also neared an agreement on allowing goods made at an
inter-Korean industrial complex in North Korea to receive duty-free status in the
European market, a sensitive issue.
The EU was South Korea's second largest trading partner after China last year,
with two-way trade reaching more than US$90 billion.
If the pact is finalized, it will boost South Korea's exports by $11 billion and
gross domestic product by 3.08 percent in the long term, according to a forecast
by the Korea Institute for International Economic Policy.
South Korea reached a free trade deal with the United States in March 2007,
shortly before it launched talks with the EU, but the deal has remained stalled
in both legislatures.
South Korea, Asia's fourth-largest economy, and the EU, the world's
single-largest economic bloc, began the talks in May 2007 but differences over
industrial tariffs and other sensitive issues have hampered progress.
The two sides will hold their eighth and final round of negotiations from March
23-24 in Seoul, said Lee Hye-min, deputy minister for trade and chief negotiator.
"Next week's round of negotiations will be the final," said Lee. "Based on the
negotiations, trade ministers from both sides will meet early next month to
finalize, and may declare the deal."
The time and place for the trade minister-level meeting has not yet been fixed,
he added.
Seoul and Brussels have agreed to eliminate or phase out tariffs on 96 percent of
EU goods and 99 percent of South Korean goods within three years. They have also
agreed to abolish tariffs on all industrial goods within five years after the
deal takes effect, according to trade officials.
One of the most sensitive issues has been auto trade. After much wrangling, the
two sides agreed to eliminate tariffs on cars with an engine displacement of over
2.5 liters within three years. Those for smaller cars will be lifted after five
years.
South Korea currently imposes an 8 percent import duty on European cars, while
the EU imposes a 10 percent duty on autos from South Korea.
Lee said the two sides have also neared an agreement on allowing goods made at an
inter-Korean industrial complex in North Korea to receive duty-free status in the
European market, a sensitive issue.
The EU was South Korea's second largest trading partner after China last year,
with two-way trade reaching more than US$90 billion.
If the pact is finalized, it will boost South Korea's exports by $11 billion and
gross domestic product by 3.08 percent in the long term, according to a forecast
by the Korea Institute for International Economic Policy.
South Korea reached a free trade deal with the United States in March 2007,
shortly before it launched talks with the EU, but the deal has remained stalled
in both legislatures.
