ID :
70231
Mon, 07/13/2009 - 20:42
Auther :
Shortlink :
https://oananews.org//node/70231
The shortlink copeid
S. Korea expects trade accord with EU to take effect next year: official
SEOUL, July 13 (Yonhap) -- South Korea is aiming for a free trade accord with the
European Union (EU) to take effect early next year, the country's trade official
said Monday, after concluding their two-year negotiations.
Earlier in the day, Seoul and Brussels wrapped up their 26-month-long
negotiations. The trade accord is expected to go into effect early next year
after a legal review, according to Deputy Trade Minister Lee Hye-min.
"Final approval of the pact by legislative bodies is expected in either January
or February," Lee told reporters. "The trade pact will send a signal to other
nations that South Korea and the EU opted to open the markets rather than
choosing to protect them."
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).
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 also the biggest investor for South Korea last year, with its
accumulated investment totaling $44.82 billion.
The KIEP said the free trade accord with the world's largest economic bloc will
help boost South Korea's exports by $11 billion and its economic growth by more
than 3 percent, and create up to 600,000 jobs over the long haul.
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 after the deal takes effect.
On the issue of rules of origin, both sides agreed on the level of allowable
foreign content to be set at 45 percent, with 50 percent for auto parts.
One of the most sensitive issues has been auto trade. After much wrangling, the
two sides agreed to eliminate tariffs on cars with engine displacements of over
1.5 liters within three years. Tariffs for smaller cars with an engine
displacement of less than 1.5 liters will 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.
sam@yna.co.kr
(END)
European Union (EU) to take effect early next year, the country's trade official
said Monday, after concluding their two-year negotiations.
Earlier in the day, Seoul and Brussels wrapped up their 26-month-long
negotiations. The trade accord is expected to go into effect early next year
after a legal review, according to Deputy Trade Minister Lee Hye-min.
"Final approval of the pact by legislative bodies is expected in either January
or February," Lee told reporters. "The trade pact will send a signal to other
nations that South Korea and the EU opted to open the markets rather than
choosing to protect them."
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).
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 also the biggest investor for South Korea last year, with its
accumulated investment totaling $44.82 billion.
The KIEP said the free trade accord with the world's largest economic bloc will
help boost South Korea's exports by $11 billion and its economic growth by more
than 3 percent, and create up to 600,000 jobs over the long haul.
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 after the deal takes effect.
On the issue of rules of origin, both sides agreed on the level of allowable
foreign content to be set at 45 percent, with 50 percent for auto parts.
One of the most sensitive issues has been auto trade. After much wrangling, the
two sides agreed to eliminate tariffs on cars with engine displacements of over
1.5 liters within three years. Tariffs for smaller cars with an engine
displacement of less than 1.5 liters will 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.
sam@yna.co.kr
(END)
