ID :
53052
Tue, 03/31/2009 - 09:11
Auther :
Shortlink :
https://www.oananews.org//node/53052
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FTAs have positive effect on boosting trade volume: report
By Lee Joon-seung
SEOUL, March 31 (Yonhap) -- Free trade pacts have greatly boosted South Korea's commercial transaction volume, helping economic growth, a government report said Tuesday.
Free trade agreements (FTAs) signed with Chile, Singapore, the European Free
Trade Association (EFTA) and the Association of Southeast Asian Nations (ASEAN)
caused trade with these countries to jump 20.5 to 31.6 percent annually on
average, the report by the Ministry of Knowledge Economy said.
The growth is a gain from the average 3.6 to 19.8 percent increases tallied for
trade with those nations before the respective trade pacts went into effect.
South Korea is a latecomer in establishing FTAs. Its first pact with Chile went
into effect in April 2004, followed by deals with Singapore and the EFTA in 2006.
An agreement with ASEAN was implemented the following year.
Korea's economy relies heavily on trade. Imports and exports jointly accounted
for roughly 70 percent of the country's gross domestic product last year.
The ministry in charge of trade promotion said compared to South Korea's trade
with the rest of the world, two-way transactions with FTA countries grew 1.3 to
1.8 times faster.
"In the case of EFTA, made up of Switzerland, Norway, Ireland and Lichtenstein,
trade shot up more than eight-fold, while trade with Chile jumped 3.5 times,"
said a government official.
The official added that in the case of Chile, Singapore and ASEAN, the trade
deals helped export growth, while imports benefited more in the case of the
European trade association.
"Because tariffs and other trade-related barriers are being lowered gradually in
the case of some countries, there is a possibility that trade will continue to
grow down the road as more restrictions come down," he said.
The report said that FTAs contributed to more exports of textiles, steel,
petrochemicals, general machinery, cars and auto parts, while imports of
electronic components were helped by the open trade pacts.
South Korea also signed an FTA with the United States in 2007, but that deal
remains stalled in the legislatures of both nations.
Seoul reached a tentative free trade accord with the European Union last week,
and is currently engaged in talks with India, Canada, Mexico, Japan and the Gulf
Cooperation Council. The latter comprises Saudi Arabia, the United Arab Emirates,
Bahrain, Qatar, Oman and Kuwait.
SEOUL, March 31 (Yonhap) -- Free trade pacts have greatly boosted South Korea's commercial transaction volume, helping economic growth, a government report said Tuesday.
Free trade agreements (FTAs) signed with Chile, Singapore, the European Free
Trade Association (EFTA) and the Association of Southeast Asian Nations (ASEAN)
caused trade with these countries to jump 20.5 to 31.6 percent annually on
average, the report by the Ministry of Knowledge Economy said.
The growth is a gain from the average 3.6 to 19.8 percent increases tallied for
trade with those nations before the respective trade pacts went into effect.
South Korea is a latecomer in establishing FTAs. Its first pact with Chile went
into effect in April 2004, followed by deals with Singapore and the EFTA in 2006.
An agreement with ASEAN was implemented the following year.
Korea's economy relies heavily on trade. Imports and exports jointly accounted
for roughly 70 percent of the country's gross domestic product last year.
The ministry in charge of trade promotion said compared to South Korea's trade
with the rest of the world, two-way transactions with FTA countries grew 1.3 to
1.8 times faster.
"In the case of EFTA, made up of Switzerland, Norway, Ireland and Lichtenstein,
trade shot up more than eight-fold, while trade with Chile jumped 3.5 times,"
said a government official.
The official added that in the case of Chile, Singapore and ASEAN, the trade
deals helped export growth, while imports benefited more in the case of the
European trade association.
"Because tariffs and other trade-related barriers are being lowered gradually in
the case of some countries, there is a possibility that trade will continue to
grow down the road as more restrictions come down," he said.
The report said that FTAs contributed to more exports of textiles, steel,
petrochemicals, general machinery, cars and auto parts, while imports of
electronic components were helped by the open trade pacts.
South Korea also signed an FTA with the United States in 2007, but that deal
remains stalled in the legislatures of both nations.
Seoul reached a tentative free trade accord with the European Union last week,
and is currently engaged in talks with India, Canada, Mexico, Japan and the Gulf
Cooperation Council. The latter comprises Saudi Arabia, the United Arab Emirates,
Bahrain, Qatar, Oman and Kuwait.
