Brussels, 16/10/2012 (Agence Europe) - Pleased with the first results of the free trade agreement between the EU and South Korea one year after its entry into force, Commissioner Karel De Gucht does not consider it necessary, as things stand, to activate the safeguard clause for the motor industry, as France advocates.
Under pressure from its motor industry, France called, this summer, for close surveillance of imports on to the European market of South Korean cars, as it suspects such imports are increasing considerably one year after the entry into force, on 1 July 2011, of the EU/South Korea free trade agreement. It will not obtain activation of the automobile safeguard clause foreseen. Speaking at a workshop on the first results of the EU/South Korea trade agreement, organised by the European Parliament in Brussels on Tuesday 16 October and also attended by South Korean Trade Minister Bark Taeho, De Gucht repeated that France called for surveillance but, as already pointed out, was not convincing.
De Gucht said he was quite happy with the results for Europe. EU exports to South Korea, he said, have greatly increased. During one year, from 1 July 2011 when the agreement was first put into effect, till 30 June 2012, exports of EU goods to South Korea amounted to $35.3 billion - of which 47% was in transport equipment, 16% chemical products, 10% manufactured articles, 10% manufactured goods and 10% in minerals. Exports from South Korea to the EU rose to €37.7 million, including 63% of transport equipment, 12% of manufactured articles and 10% of manufactured goods. In 2011, EU exports to South Korea had reached €30.6 billion in total with imports from its Asian partner amounting to €38 billion.
According to these first figures, European exports of vehicles to South Korea increased by only 0.4% since 2011, but by 63% compared to 2008. South Korean exports of vehicles, for their part, increased by 43% since 2011 but fell 5% compared to 2008. On Tuesday, De Gucht pointed out that a large proportion of South Korean motor vehicles sold on the European market are manufactured in Europe and in India, with imports coming directly from South Korea being somewhat limited. (EH/transl.jl)