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    EU And South Korea Sign Free Trade Agreement

    2010/10/11 18:11:00 47

    South Korea Trade Agreement

    EU Trade Commissioner Carlo Teguh Hurt (Karel De Gucht), Belgium foreign minister Steven Vanackere, on behalf of the European Union Council and the South Korean trade minister Jong-hoon signed the EU - Korea Free Trade Agreement (FTA).


    This free trade agreement is the most ambitious European Union ever signed with an Asian country.

    trade agreement

    The signing of the agreement sends a signal that the EU has taken an important part in its practice, which is also one of the main activities of the EU South Korea summit held in Brussels.


    "The EU Korea agreement marks a major achievement in improving our trade relations.

    It will expand employment opportunities and promote economic growth in the EU at this critical juncture.

    This extensive and innovative paction has created a benchmark for what we want to win in other associations, "commissioner Teguh Hurt said.

    "Solving the more difficult non-tariff trade barriers in international trade can reduce business costs as much as possible."


    The European Commission and South Korea drafted in October 15, 2009

    free trade

    The text of the agreement.

    Since then, the protocol texts have been plated into Korean and 21 EU languages.

    Before the formal signing ceremony, all EU Member States signed the free trade agreement.


    The provisional implementation date is July 1, 2011, if the European Parliament and the Council approved the free trade agreement.

    EU Member States will also endorse free trade agreements in accordance with their laws and procedures.


    A study estimates that the deal will create 19 billion 100 million euros for the European Union.

    goods

    And trade in services, another study estimates that the next 20 years, compared with the signing of the free trade agreement, the EU - South Korea bilateral trade will more than double.

    The agreement will eliminate almost all import tariffs and many non-tariff trade barriers between the two economies.


    The agreement will exempt EU exporters of agricultural and industrial products from paying tariffs on South Korea's exports.

    Once the tariff is abolished, EU exporters will save 1 billion 600 million euros a year.

    Half of these savings will take place from the date of the entry into force of the agreement.


    In 2009, EU - Korea's merchandise trade value was about 54 billion euros.

    At present, the EU and South Korea have a deficit in merchandise trade, but the trend shows that the Korean market has great potential for growth.

    South Korea's products, chemicals, pharmaceuticals, auto parts, industrial machinery, footwear, medical equipment, nonferrous metals, steel, leather and fur, wood, ceramics and glass products enjoy a trade surplus in the EU.

    Similarly, EU farmers see South Korea as a lucrative export market with annual sales exceeding 1 billion euros.

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

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