ID :
191239
Mon, 06/27/2011 - 06:02
Auther :
Shortlink :
https://oananews.org//node/191239
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EU FTA to fuel exports of 'green' products, machineries
South Korea's free trade agreement (FTA) with the European Union (EU) is expected to fuel growth in its exports of "green" products, machineries and electronic parts, a report said Monday.
Once the FTA goes into effect on July 1, South Korean companies will be in a position to take advantage of tariff cuts and expand their market presence in the world's largest economic bloc, according to the report by the Institute for International Trade.
The combined gross domestic product of EU members reached US$16 trillion in 2009, with imports topping $4 trillion.
"Despite Europe's size, South Korea's market share stood at just 1 percent as of last year," the institute said. "It is small compared to the country's overall global market share that has hovered in the 3 percent range in recent years."
According to the report, demand for consumer goods from advanced industrialized economies such as France and Britain will likely rise, while exports of capital goods and industrial materials to Hungary, Poland and Slovakia are expected to increase.
In addition, the trade deal could spur shipments of eco-friendly green products such as energy efficient LED lights, lithium ion batteries, smart grids and parts for wind power generators.
South Korea has begun a concerted effort to build up its green industries that are expected to gain importance as countries around the world move to reduce greenhouse emissions.
While tariffs of autos will come down slowly, there will likely be a rise in demand for car parts in the coming years, the report said, adding other exports that may benefit from the FTA are parts used in rechargeable batteries, LED TV monitors and various petrochemical products.
The report said local importers of alcoholic beverages, dairy products, clothing and miscellaneous household goods may experience a rise in sales as well due to the lowered import tariffs.
Once the FTA goes into effect on July 1, South Korean companies will be in a position to take advantage of tariff cuts and expand their market presence in the world's largest economic bloc, according to the report by the Institute for International Trade.
The combined gross domestic product of EU members reached US$16 trillion in 2009, with imports topping $4 trillion.
"Despite Europe's size, South Korea's market share stood at just 1 percent as of last year," the institute said. "It is small compared to the country's overall global market share that has hovered in the 3 percent range in recent years."
According to the report, demand for consumer goods from advanced industrialized economies such as France and Britain will likely rise, while exports of capital goods and industrial materials to Hungary, Poland and Slovakia are expected to increase.
In addition, the trade deal could spur shipments of eco-friendly green products such as energy efficient LED lights, lithium ion batteries, smart grids and parts for wind power generators.
South Korea has begun a concerted effort to build up its green industries that are expected to gain importance as countries around the world move to reduce greenhouse emissions.
While tariffs of autos will come down slowly, there will likely be a rise in demand for car parts in the coming years, the report said, adding other exports that may benefit from the FTA are parts used in rechargeable batteries, LED TV monitors and various petrochemical products.
The report said local importers of alcoholic beverages, dairy products, clothing and miscellaneous household goods may experience a rise in sales as well due to the lowered import tariffs.
