ID :
190830
Fri, 06/24/2011 - 10:20
Auther :
Shortlink :
https://oananews.org//node/190830
The shortlink copeid
EUCCK calls on S. Korea to remove non-tariff barriers
(ATTN: CHANGES headline, lead; UPDATES with more details throughout; TRIMS)
SEOUL, June 24 (Yonhap) -- A European business body urged South Korea Friday to abolish non-tariff barriers in 20 industries and expand market access, with the implementation of a free trade deal between South Korea and the European Union (EU) just a week away.
In a white paper on market access issues, the European Chamber of Commerce in Korea (EUCCK) claimed that some unresolved market access obstacles in South Korea will remain even after the Korea-EU FTA goes into effect on July 1.
The two sides signed the free trade agreement (FTA) in October last year. South Korea's parliament approved the deal in April, two months after the European Parliament ratified it.
Under the deal, 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 of the deal taking effect.
However, EUCCK Chairman Jean Marie Hurtiger said that some regulations and requirements can be considered market barriers for European companies.
"I must mention here that, while the FTA will address the tariff barriers that have prevented so far many EU investors from penetrating the Korean market, there are still many market access issues that remain to be tackled," he said in a press conference in downtown Seoul.
In the paper, the EUCCK pointed out that European companies in some 20 fields, including automobile, intellectual property, cosmetics, medical and financial industries, are still expected to struggle to compete with South Korean rivals due to non-tariff barriers.
"EU automobile importers will continue too to face constraints related to standards," said Hurtiger, also chairman of Renault Samsung Motors Co., Ltd. "Numerous violations of intellectual property rights (IPR) remain, despite Korea having the best legislation in the region to protect intellectual property. The enforcement of IPR protection is simply lacking."
Medical Devices Committee Chairman Maxim Mamin said the Korean medical device market, which is the fourth biggest in Asia and 13th largest in the world, was generally regarded by EU companies as "difficult."
"European manufacturers are required to perform additional testing procedures for approval in Korea, even though products already comply with international standards and certifications," said Mamin.
"In the course of EU-Korea FTA implementation, the medical device industry expects Korean authorities to further improve communication with industry members in regards to listing, pricing and reimbursement based on fair, transparent, objective and non-discriminatory principles."
Hurtiger said more practical and substantial steps are needed to improve relevant regulations to meet global standards.
"We strongly believe that tackling perceived market access barriers in a mutually cooperative and transparent environment is beneficial for all involved parties," he said.
Nevertheless, he expected that the free trade deal between South Korea and EU will start a new chapter in bilateral trade.
"This agreement will open up new trade opportunities in goods and services and will bring about an unparalleled series of tariff liberalization and dismantling of technical barriers to trade," Hurtiger said. "Korean companies will also have access to the sizable markets of EU countries."
He said the EUCCK will make efforts to help South Korean and European companies explore each other's markets and enjoy benefits by accessing new markets.
The FTA is expected to boost bilateral trade between South Korea and the EU by as much as 20 percent in the long term, according to the state-run Korea Institute for International Economic Policy.
Trade between the 27-member economic bloc and South Korea totaled US$92.2 billion last year, rising around 17 percent from 2009. The EU is also currently in talks with India and Singapore for FTAs.
brk@yna.co.kr
SEOUL, June 24 (Yonhap) -- A European business body urged South Korea Friday to abolish non-tariff barriers in 20 industries and expand market access, with the implementation of a free trade deal between South Korea and the European Union (EU) just a week away.
In a white paper on market access issues, the European Chamber of Commerce in Korea (EUCCK) claimed that some unresolved market access obstacles in South Korea will remain even after the Korea-EU FTA goes into effect on July 1.
The two sides signed the free trade agreement (FTA) in October last year. South Korea's parliament approved the deal in April, two months after the European Parliament ratified it.
Under the deal, 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 of the deal taking effect.
However, EUCCK Chairman Jean Marie Hurtiger said that some regulations and requirements can be considered market barriers for European companies.
"I must mention here that, while the FTA will address the tariff barriers that have prevented so far many EU investors from penetrating the Korean market, there are still many market access issues that remain to be tackled," he said in a press conference in downtown Seoul.
In the paper, the EUCCK pointed out that European companies in some 20 fields, including automobile, intellectual property, cosmetics, medical and financial industries, are still expected to struggle to compete with South Korean rivals due to non-tariff barriers.
"EU automobile importers will continue too to face constraints related to standards," said Hurtiger, also chairman of Renault Samsung Motors Co., Ltd. "Numerous violations of intellectual property rights (IPR) remain, despite Korea having the best legislation in the region to protect intellectual property. The enforcement of IPR protection is simply lacking."
Medical Devices Committee Chairman Maxim Mamin said the Korean medical device market, which is the fourth biggest in Asia and 13th largest in the world, was generally regarded by EU companies as "difficult."
"European manufacturers are required to perform additional testing procedures for approval in Korea, even though products already comply with international standards and certifications," said Mamin.
"In the course of EU-Korea FTA implementation, the medical device industry expects Korean authorities to further improve communication with industry members in regards to listing, pricing and reimbursement based on fair, transparent, objective and non-discriminatory principles."
Hurtiger said more practical and substantial steps are needed to improve relevant regulations to meet global standards.
"We strongly believe that tackling perceived market access barriers in a mutually cooperative and transparent environment is beneficial for all involved parties," he said.
Nevertheless, he expected that the free trade deal between South Korea and EU will start a new chapter in bilateral trade.
"This agreement will open up new trade opportunities in goods and services and will bring about an unparalleled series of tariff liberalization and dismantling of technical barriers to trade," Hurtiger said. "Korean companies will also have access to the sizable markets of EU countries."
He said the EUCCK will make efforts to help South Korean and European companies explore each other's markets and enjoy benefits by accessing new markets.
The FTA is expected to boost bilateral trade between South Korea and the EU by as much as 20 percent in the long term, according to the state-run Korea Institute for International Economic Policy.
Trade between the 27-member economic bloc and South Korea totaled US$92.2 billion last year, rising around 17 percent from 2009. The EU is also currently in talks with India and Singapore for FTAs.
brk@yna.co.kr
