Brussels, 12/10/2011 (Agence Europe) - Co-chairing the oversight committee in Seoul on Wednesday 12 October, Trade Commissioner Karel De Gucht and South Korean Trade Minister Kim Jong-hoon took stock of the way in which the bilateral free trade deal between the EU and South Korea is being implemented, 100 days after it took effect on 1 July this year. Although the first figures available reveal an increase in bilateral trade since the summer, Seoul should ensure effective abolition of its non-tariff barriers, especially in the automotive sector.
“I'm delighted that the first meeting of the EU-South Korea Trade Committee has proven so valuable at clearing up a number of outstanding issues thanks to the commitment and pragmatism of both sides. The first few months were always expected to be a test for such an innovative and far-reaching trade agreement which is why I'm so pleased to see that it has passed with flying colours”, comments Commissioner De Gucht in a press release published after the meeting of the joint committee.
One hundred days after entry into force of the most ambitious bilateral free trade agreement ever negotiated by the EU, which provides for the suppression over five years of 98.7% of duties applicable to the value of bilateral trade in manufactured goods and almost all agricultural products, the first figures show a rise in bilateral trade this summer. However, major barriers to implementation of the deal remain. These mainly relate to regulatory barriers.
On Tuesday, both parties agreed on ways forward to bridge outstanding implementation issues in the areas of motor vehicles and electronics. On motor vehicles, both sides tackled market access issues on tyres and after-sales verification rules for diesel emissions and safety standards of cars. On electronic goods, the meeting addressed the need to recognise agreed ways of testing electronic products, the Commission explains.
Commissioner De Gucht also underlined the need for the EU and South Korea to use the free trade agreement and the deepened partnership to help forge common standards in the future on products such as electric vehicles (e-cars). Such a move, they believe, is key to ensure that Europe, South Korea and their main trading partners remain leaders on standards for the world market, that their companies remain competitive and that their consumers get the best choice.
Finally, the joint committee identified a number of areas where additional work by both parties is needed to reduce the administrative burden that prevents trade fluidity, such as complex procedures aimed at South Korean imports of European agricultural products.
On the sidelines of the meeting, De Gucht invited the European business world to give feedback and to inform his services of any failings in implementation of the agreement. European companies are also called on to have themselves certified as “European exporter” with their national customs administration, a condition necessary if they are to enjoy abolition of customs duties in accordance with the agreement.
The EU-South Korea free trade agreement will be the subject of a conference organised by the Commission in Brussels on 27 October, aimed at heightening the awareness of economic operators to the advantages that they can obtain from the agreement (plus information on the site of DG Trade: http://www.ec.europa.eu/trade ). (EH/transl.jl)