ID :
82451
Wed, 09/30/2009 - 20:16
Auther :
Shortlink :
https://www.oananews.org//node/82451
The shortlink copeid
S. Korea, EU to initial free trade deal next month
SEOUL, Sept. 30 (Yonhap) -- South Korea and the European Union (EU) will initial
their free trade deal next month as both sides concluded their negotiations in
July, trade officials said Wednesday.
South Korean Trade Minister Kim Jong-hoon and his EU counterpart Catherine Ashton
will initial the accord in Brussels on Oct. 15, they said.
"Both sides are expected to then officially sign the deal around March next year,
and the deal may take into effect in July after all related procedures are
completed," an official at the Trade Ministry's public relations division said.
Overall, the deal 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).
Under the agreement, Seoul and Brussels will 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
"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.
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.
sam@yna.co.kr
(END)
their free trade deal next month as both sides concluded their negotiations in
July, trade officials said Wednesday.
South Korean Trade Minister Kim Jong-hoon and his EU counterpart Catherine Ashton
will initial the accord in Brussels on Oct. 15, they said.
"Both sides are expected to then officially sign the deal around March next year,
and the deal may take into effect in July after all related procedures are
completed," an official at the Trade Ministry's public relations division said.
Overall, the deal 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).
Under the agreement, Seoul and Brussels will 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
"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.
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.
sam@yna.co.kr
(END)
