ID :
55519
Wed, 04/15/2009 - 08:22
Auther :
Shortlink :
https://www.oananews.org//node/55519
The shortlink copeid
S. Korea-EU FTA can help countries overcome economic crisis: official
SEOUL, April 15 (Yonhap) -- A free trade pact between South Korea and the European Union (EU) can help both sides overcome the current economic crisis, a senior government official said Wednesday.
Knowledge Economy Minister Lee Youn-ho said at a gathering hosted by the European
Union Chamber of Commerce in Korea in Seoul that the free trade agreement (FTA)
will open new opportunities for governments and businesses.
"Governments and companies must all try to use the FTA as a means to overcome the
current global economic slump," he said.
The policymaker pointed out that open trade would fuel exports, imports and
investment, while reducing Korea's dependence on Japanese parts and materials.
He added that the FTA could help improve South Korea's international business
stature, boosting corporate tie-ups and investments.
After eight rounds of talks, the two sides have effectively ironed out
differences on most outstanding issues, with the exception of South Korea's duty
drawback scheme, which allows import tariffs to be returned to companies that use
imported material to make export products. Seoul hopes to wrap up the deal in
May.
Experts have said that because both South Korea and the EU maintain relatively
high duties on key industrial goods, the FTA will have a noteworthy effect.
The EU was Seoul's second-largest trading partner after China last year, with
bilateral trade topping US$98 billion. If the pact is finalized, South Korea's
exports may rise by $11 billion, with the gross domestic product gaining 3.08
percent.
Lee, meanwhile, told European businessmen and diplomats that Seoul is committed
to taking an active role in reducing global greenhouse gases by pushing forward
its "green growth" policy.
The official in charge of the country's industrial, trade and investment
promotion ministry also stressed that while there have been concerns about the
country's economic fundamentals, adequate liquidity and the soundness of local
banks and businesses preclude the country from experiencing a crisis similar to
that of the late 1990s.
"The situation is completely different from the 1997-98 Asian financial crisis
that rocked the country," he said.
yonngong@yna.co.kr
(END)
Knowledge Economy Minister Lee Youn-ho said at a gathering hosted by the European
Union Chamber of Commerce in Korea in Seoul that the free trade agreement (FTA)
will open new opportunities for governments and businesses.
"Governments and companies must all try to use the FTA as a means to overcome the
current global economic slump," he said.
The policymaker pointed out that open trade would fuel exports, imports and
investment, while reducing Korea's dependence on Japanese parts and materials.
He added that the FTA could help improve South Korea's international business
stature, boosting corporate tie-ups and investments.
After eight rounds of talks, the two sides have effectively ironed out
differences on most outstanding issues, with the exception of South Korea's duty
drawback scheme, which allows import tariffs to be returned to companies that use
imported material to make export products. Seoul hopes to wrap up the deal in
May.
Experts have said that because both South Korea and the EU maintain relatively
high duties on key industrial goods, the FTA will have a noteworthy effect.
The EU was Seoul's second-largest trading partner after China last year, with
bilateral trade topping US$98 billion. If the pact is finalized, South Korea's
exports may rise by $11 billion, with the gross domestic product gaining 3.08
percent.
Lee, meanwhile, told European businessmen and diplomats that Seoul is committed
to taking an active role in reducing global greenhouse gases by pushing forward
its "green growth" policy.
The official in charge of the country's industrial, trade and investment
promotion ministry also stressed that while there have been concerns about the
country's economic fundamentals, adequate liquidity and the soundness of local
banks and businesses preclude the country from experiencing a crisis similar to
that of the late 1990s.
"The situation is completely different from the 1997-98 Asian financial crisis
that rocked the country," he said.
yonngong@yna.co.kr
(END)
