Brussels, 07/11/2013 (Agence Europe) - According to Eurostat, there was a slight surplus of €1 billion in the EU trade balance for goods during the first six months of the year.
Over the last decade, EU28 exports to South Korea have more than doubled, from €17.7 billion in 2002 to a peak of €37.8 billion in 2012, according to the European statistics office on the eve of the bilateral summit of 8 November (see EUROPE 10958). EU28 imports from South Korea have grown more modestly, from €24.7 billion to €38.0 billion, remaining below the peak of €41.7 billion recorded in 2007. Although the EU28 has always recorded a trade deficit with South Korea over the past ten years, since 2006 this deficit has progressively fallen, from €18.1 billion to almost in balance (-0.2 billion) in 2012.
In the first six months of 2013, EU28 exports to South Korea remained nearly stable compared with the first six months of 2012 at around €18.5 billion, while imports decreased from €19.8 billion to €17.7 billion. As a result, the trade deficit of €1.4 billion registered in the first half of 2012 turned into a small surplus of €1.0 billion in the first half of 2013. It is to be noted that the EU28 deficit for machines and vehicles fell from €4.9 billion in the first half of 2012 to €2 billion in the first half of 2013.
There was an increasing EU surplus in trade in services with South Korea between 2009 and 2011. In 2011, the EU exported €9.0 billion in services to South Korea, while imports rose to €4.5 billion, i.e. a surplus of €4.5 billion compared with €3.7 billion in 2010 and €2.8 billion in 2009.
Finally, EU27 foreign direct investment (FDI) flows into South Korea rose from €1.2 billion in 2009 to €2.5 billion in both 2010 and 2011, while South Korean FDI into the EU27 increased from €1.6 billion in 2009 to €3.9 billion in 2010 and then fell to €1.4 billion in 2011.
Non-tariff barriers - automotive industry becomes impatient. On 7 November, the European Automobile Manufacturers Association (ACEA), the European Association of Automotive Suppliers (CLEPA) and European Tyre and Rubber Manufacturers' Association (ETRMA) raised concerns about restricted access to the South Korean market due to previously existing and newly-emerging non-tariff barriers. Although they acknowledge the efforts made by the Commission to ensure a better environment for the EU automotive industry in South Korea since the trade deal between the two regions came into force on 1 July 2011, the three associations call upon the European Commission and on member states to “take urgent steps to ensure trade barriers are dismantled to ensure that free trade for the European automotive industry can indeed become a reality in South Korea”. (EH/transl.jl)