Bridges Weekly Trade News Digest • Volume 13 • Number 8 • 4th March 2009
EU, South Korea Inch toward FTA
Discuss this articleShare your views with other visitors, and read what they have to say
Officials from South Korea and the European Union are meeting in Brussels this week in an attempt to work through controversies over auto trade and rules of origin that have slowed progress toward the finalisation of a free trade agreement between the two trading partners. Although some European countries have expressed concerns about the deal, EU Trade Commissioner Catherine Ashton has said she is confident that an agreement can be reached.
But before any progress can be made on the deal, Ashton will have to appease officials in Berlin, Paris and Rome who are worried about how the deal, which would reduce tariffs on imports of Korean cars, might impact their domestic auto industries. An official from the EU trade commission said that while Ashton is concerned about the effect of the deal on the European auto industry, she thinks that the deal, which could be worth over US$ 100 Billion, should not be held hostage at the expense of the overall benefits that the agreement would bring to the European economy.
“The Commissioner agreed that the car issue still needed to be sorted out in a satisfactory manner. Negotiations are still ongoing with Korea, so the Commissioner is confident this can be ironed out,” the official said, Reuters reported last week.
German Economy Minister Karl-Theodor zu Guttenberg said that Berlin supported the agreement but that “it must be balanced for the car industry,” Reuters reported.
“I have told the Commissioner to hone in on these points in her further discussions with Korean partners,” zu Guttenberg said.
Experts say the new agreement could bolster bilateral trade, which totalled US$ 93 billion in 2007, by as much as 40 percent in the long term. Both trading partners have said they have an interest in far-reaching liberalisation of service and investment along with furthering the growth of two-way trade through increased cooperation in sectors such as transport, energy, science and technology, industry and environment.
South Korea is the EU’s fourth-largest non-European trade partner, while the 27-nation EU is South Korea’s second largest export market after China. The EU is also Seoul’s leading foreign investor.
The eighth round of the negotiations, which began in Seoul in May 2007, will be held in the Korean capital later this month (see Bridges Weekly, 16 May 2007, http://ictsd.net/i/news/bridgesweekly/7591/).
Thus far, the two sides have already managed to agree on important issues such as antitrust and merger aspects of competition policy, domestic regulatory issues and transparency, and dispute resolution mechanisms.
ICTSD reporting; “EU trade chief sees S.Korea pact after German talks,” REUTERS, 27 February 2009; “S Korea, EU to hold talks on inter-session FTA,” Xinhua New Agency, 3 March 2009; “EU trade chief sees S. Korea pact after German Talks,” Alibaba, 27 February 2009.
` <sR8S
Locke now must be confirmed by the US Senate before he can assume the post, a process undergone by neither Richardson nor Gregg, who both withdrew before hearings could commence.
Joking with reporters, Obama referred briefly to the previous nominations.
“I’m sure it’s not lost on anyone that we’ve tried this a couple of times, but I’m a big believer in keeping at something until you get it right.”
“Gary is the right man for this job,” he said.
ICTSD reporting.
Add a comment
Enter your details and a comment below, then click Submit Comment. We’ll review and publish the best comments.