ID :
72321
Mon, 07/27/2009 - 08:32
Auther :
Shortlink :
https://www.oananews.org//node/72321
The shortlink copeid
S. Korea, EU to start legal review of their free trade deal
SEOUL, July 27 (Yonhap) -- South Korea and the European Union (EU) will start a
legal review of the free trade deal that they concluded earlier this month,
Seoul's trade ministry said Monday.
During a three-day meeting in Brussels that starts later in the day, officials
from both sides will work to clarify the text of the deal, according to the
Ministry of Foreign Affairs and Trade.
Both sides will meet next month for another legal review of the trade deal in
Seoul, it said. After wrapping up the legal review, Seoul and Brussels will
initiate the deal either in September or October, according to the ministry.
Overall, the deal concluded on July 13 is expected to boost bilateral trade
between South Korea and the EU by as much as 20 percent, according to estimates
by the state-run Korea Institute for International Economic Policy (KIEP).
The EU was South Korea's second-largest trading partner after China last year. In
2008, two-way trade totaled US$98.4 billion with South Korea enjoying a surplus
of $18.4 billion.
The EU was the biggest investor for South Korea last year with its accumulated
investment totaling $44.82 billion.
Under the deal, Seoul and Brussels eliminate or phase out tariffs on 96 percent
of EU goods and 99 percent of South Korean goods within three years after the
accord takes effect. They have also agreed to abolish tariffs on most industrial
goods within five years after the deal takes effect.
The accord also permits duty drawbacks, which allow the tariffs levied on parts
used by manufacturers to make products such as cars to be refunded when the final
product is exported.
But the deal includes a provision that caps refundable tariffs should there be a
"dramatic changes in foreign outsourcing by Korean manufacturers" within five
years of the accord taking effect.
On the issue of rules of origin, both sides agreed on the level of allowable
foreign contents at 45 percent. In case of auto parts and others, the level is
set at 50 percent.
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
1.5 liters within three years. Tariffs for smaller cars with an engine
displacement of less than 1.5 liters would 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.
sam@yna.co.kr
(END)
legal review of the free trade deal that they concluded earlier this month,
Seoul's trade ministry said Monday.
During a three-day meeting in Brussels that starts later in the day, officials
from both sides will work to clarify the text of the deal, according to the
Ministry of Foreign Affairs and Trade.
Both sides will meet next month for another legal review of the trade deal in
Seoul, it said. After wrapping up the legal review, Seoul and Brussels will
initiate the deal either in September or October, according to the ministry.
Overall, the deal concluded on July 13 is expected to boost bilateral trade
between South Korea and the EU by as much as 20 percent, according to estimates
by the state-run Korea Institute for International Economic Policy (KIEP).
The EU was South Korea's second-largest trading partner after China last year. In
2008, two-way trade totaled US$98.4 billion with South Korea enjoying a surplus
of $18.4 billion.
The EU was the biggest investor for South Korea last year with its accumulated
investment totaling $44.82 billion.
Under the deal, Seoul and Brussels eliminate or phase out tariffs on 96 percent
of EU goods and 99 percent of South Korean goods within three years after the
accord takes effect. They have also agreed to abolish tariffs on most industrial
goods within five years after the deal takes effect.
The accord also permits duty drawbacks, which allow the tariffs levied on parts
used by manufacturers to make products such as cars to be refunded when the final
product is exported.
But the deal includes a provision that caps refundable tariffs should there be a
"dramatic changes in foreign outsourcing by Korean manufacturers" within five
years of the accord taking effect.
On the issue of rules of origin, both sides agreed on the level of allowable
foreign contents at 45 percent. In case of auto parts and others, the level is
set at 50 percent.
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
1.5 liters within three years. Tariffs for smaller cars with an engine
displacement of less than 1.5 liters would 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.
sam@yna.co.kr
(END)
