S. Korea, EU announce conclusion of free-trade accord

SEOUL, July 13 Kyodo -
(EDS: UPDATING WITH MORE DETAILS, 4TH GRAF)
South Korea and the European Union said Monday they have concluded negotiations
for a bilateral free-trade agreement.
South Korea's President Lee Myung Bak and Prime Minister Fredrik Reinfeldt of
Sweden, the current chair of the European Union, made the announcement at a
news conference after talks in Stockholm.
The South Korean government hopes the accord will take effect around June or
July next year following ratification procedures in South Korea and the
European Union.
The two sides will remove tariffs on more than 90 percent of their products
within three years after the accord goes into force.
Lee arrived in the Swedish capital Saturday on a three-day visit as part of a
three-nation European tour.
With a population of 500 million, the 27-member European Union is a huge
market, providing a vital link in South Korea's trade strategy to forge a
global network of free-trade agreements.
South Korea has concluded a bilateral free-trade accord with the United States
but ratification is pending in the U.S. Congress.
The South Korean government hopes the conclusion of a free-trade agreement with
the European Union will give momentum to U.S. ratification of their bilateral
free-trade accord.
South Korean government officials also hope the free-trade accord with the
European Union will jumpstart stalled negotiations on a bilateral economic
partnership agreement between South Korea and Japan.
The timing of the ratification of the South Korea-EU accord, however, could
face hurdles as the German auto industry, which faces stiff competition from
South Korean automakers, has opposed a free-trade agreement with South Korea.
Germany will hold a general election in September.
South Korea hopes a free-trade accord will push exports of automobiles, home
electronics and textile products to Europe, while the European Union expects an
increase in cosmetics, chemical products, wine and other farm products to South
Korea.
South Korea and the European Union launched their free-trade talks in May 2007.
The two sides reached a basic agreement in March, but talks had stalled over
details.
The European Union is South Korea's second-largest trading partner, after China.
==Kyodo