Strasbourg, 02/07/2013 (Agence Europe) - Although progress has been made on non-tariff barriers and services, work nevertheless remains to be done on fully implementing the commitments in sectors that must go through a transition period.
As well as a substantial increase in trade, relatively to the advantage of the EU (which has recorded its first trade surplus for 15 years with regard to its Asian trading partner and which has reduced its deficit in the automobile sector - see EUROPE 10878) the free-trade agreement with South Korea - which entered into force in mid-2011 - is also showing positive results in the services sector and with regard to non-tariff barriers.
This free-trade agreement is by far the most ambitious ever concluded by the EU with regard to services - on the level of both the number of sectors covered and the depth of market access commitments, the European Commission states in a press release on 1 July. Some sectors will benefit from the agreement due to the changes which will be made progressively to Korean legislation over transition periods ranging from two to five years. Much progress has already been made - especially on insurance, telecommunications, legal services and the environment. Nevertheless, works remains to be done in the sectors enjoying a transition period.
The free-trade agreement is also innovative in that it removes important non-tariff barriers to free trade - especially in the automobile, pharmaceutical products, medical devices and electronics sectors. In the automobile domain - where South Korea is committed to recognising the equivalence of international standards or EU standards on all its major technical regulations, positive results have been recorded on radio wave bands for new technology, tyre markings and procedures for registering car parts. However, further efforts are needed from Korea on bringing its standards into line, the Commission states.
Progress on non-tariff barriers is also mentioned in the electronics sector, where Seoul has introduced a self-certification system for electromagnetic compatibility and electric safety, applicable to industrial machines, industrial computers and railway transport equipment. These products, which represent a third of total EU exports to South Korea, can now enter the Korean market without having to be certified in a Korean laboratory, the Commission concludes. (EH/transl.fl)