EU And South Korea Sign Free Trade Agreement

This resource trade agreement is the first time that the European Union has negotiated such an ambitious trade agreement with an Asian country.

The signing of the free trade agreement is an important step on the road of implementation. It is one of the events of the EU - South Korea summit in Brussels.

"The agreement between the EU and South Korea marks a remarkable achievement in improving our trade relations," he said.

This will provide a real boost to the EU's employment and growth in this crucial period.

This broad and innovative agreement is our benchmark for other trade agreements.

Dealing with more difficult non-tariff barriers in international trade can reduce business costs. "

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The application date of the agreement was July 1, 2011. The European Parliament has approved the free trade agreement, and the European Parliament and the Council implement the bilateral protection clauses of the EU - Korea free trade agreement.

EU Member States also approved the agreement in accordance with their own laws and procedures.

A study estimates that the agreement will generate 19 billion 100 million euros of new trade in goods and services for the European Union.

Another study calculates that trade between the two sides will double in the next 20 years.

The agreement will cancel almost all import taxes and many non-tariff barriers between the two sides.

The free trade agreement will also generate new market access for services and investment, and will make major progress in intellectual property, procurement, competition strategy, trade and sustainable development.

In 2009, the value of EU - Korea merchandise trade was about 54 billion euros.

The EU currently has trade deficits with Korea in terms of commodities, although the trend indicates that the Korean market has provided significant growth potential.

The EU has a favorable balance of trade in terms of chemicals, pharmaceuticals, automobile parts, industrial machinery, footwear, medical equipment, non ferrous metal materials, steel, leather and fur, wood, cement and glass.

Similarly, in terms of agricultural products, South Korea is the most favorable export market for EU farmers, with annual sales exceeding 1 billion euros.

In terms of services, the EU has a trade surplus of 3 billion 400 million euros with South Korea, with exports of 7 billion 800 million euros and imports of 4 billion 400 million euros in 2008.