Brussels, 06/10/2010 (Agence Europe) - The formal signing in Brussels on Wednesday 6 October of a free trade agreement between the European Union and South Korea, the first of its kind between the EU and Asia, was the highlight of the fifth summit between the EU27 and South Korea, its fourth largest trading partner.
The deal will come into force in July 2011. It includes gradual and mutual liberalisation of trade in goods and services, setting out trade-related rules for competition, state aid, intellectual property and public procurement. It covers the phasing out over the next five years of 98.7% of tariffs in industry and farming and the virtual disappearance of the remaining tariffs over a longer time period. In total, the EU will benefit from the scrapping of tariffs on its exports to South Korea to the tune of €1.6 billion.
The agreement also covers the dismantling of non-tariff barriers, particularly rules and standards in the car industry, pharmaceuticals, medical devices, chemicals and retail electronics. It includes special agreements on rules of origin, customs cooperation and cultural cooperation, along with measures on sustainable development that cover social and environmental issues.
In the EU, the deal now needs to be ratified by the European Parliament (the vote is scheduled in a week's time) and then the Council of Ministers and the EP will need to agree on the details of a safeguard clause for the car industry.
The president of the European Commission, José Manuel Barroso, said the agreement was by far the most important bilateral deal ever signed by the EU as it should double trade with South Korea over the long term. A joint statement notes that the EU and South Korea have agreed to forge a strategic partnership, explained the South Korean president, Lee Myung-bak. The president of the European Council, Herman Van Rompuy, said the agreement sent a strong signal that free trade was key for global economic recovery.
In the joint statement, the two sides confirm their commitment to reach shared objectives at the G20, including the conclusion of the Doha Round. On climate issues, they pledge to pursue a high level of ambition in reducing carbon dioxide emissions. Both sides pledge to support the six-country negotiations to solve the conflict between North and South Korea using peaceful means. (E.H./transl.fl)