S. Korea pushing to ink trade deal with EU by March

SEOUL, Dec. 31 (Yonhap) -- South Korea will seek to clinch a free trade deal with
the European Union (EU) by March and launch trade talks with Australia and five
other countries next year, the trade ministry said Wednesday.

In a 2009 policy report to President Lee Myung-bak, the ministry said it will
strive to seal a free trade agreement (FTA) with the 27-nation economic bloc by
the end of the first quarter with the aim of implementing it in 2010.
Since the signing of an FTA with the United States last year, South Korea has
held seven rounds of negotiations with the EU, the nation's second-largest
trading partner after China.
The negotiations have made little headway, however, as both sides have been
reluctant to accept each other's demands on tariff reductions, rules of origin
and auto trade and auto-related technical standards.
A date for the eighth round of talks has not yet been set, but trade ministers
from both sides are scheduled to meet next month to iron out differences.
Bilateral trade came to US$93.07 billion in 2007, and some unofficial studies
suggest an FTA would boost that figure by as much as 40 percent in the long run.
The EU is also the largest foreign investor in South Korea, with outstanding
investment reaching $43.40 billion at the end of 2007.
The trade ministry also said it will begin free trade negotiations with
Australia, Peru, New Zealand, Turkey and Columbia next year in an effort to
strengthen its export-oriented economy.
Currently, South Korea has FTAs with Chile, Singapore and the European Free Trade
Association, as well as a partial pact with the Association of Southeast Asian
Nations.
The Korea-U.S. agreement has been signed but still awaits approval by the
legislatures of both nations.
Seoul is also seeking similar trade deals with Canada, India and Mexico.
sam@yna.co.kr
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