Brussels, 12/10/2007 (Agence Europe) - On Wednesday 10 October, the day after his meeting in Brussels with European Trade Commissioner Peter Mandelson (EUROPE 9515), the South Korean trade minister, Kim Jong-Hoon, announced that Seoul may improve its tariff concessions during next week's talks with the European Union in order to spur a bilateral EU-South Korea free trade agreement (FTA). Slow progress has been made in talks to date due to differences between the two parties, mainly on access to the market in two sensitive areas: automobiles and pharmaceutical products. During their meeting on 9 October, Messrs Mandelson and Kim restated their commitment to complete talks as soon as possible. The South Korean negotiators may put a better offer on the table during the 4th discussion session next week in Seoul. The stakes of the EU-South Korea FTA are: - Seoul wants broader access to the Community market for its motor parts, its electronic products and textiles, while the EU27 for their part expect improved access to the South Korean market for their automobiles, their pharmaceutical, cosmetic and chemical products as well as their services. At this stage in the discussions, the European side continues to demand that the South Korea match the tariff concessions it gave the United States in separate negotiations for an FTA in June this year. The EU has already suggested gradually phasing out all import tariffs on South Korean goods within seven years, 80% of the tariffs being reduced to zero within 3 years after entry into force of the agreement. South Korea, for its part, has offered to eliminate tariffs within three years on 68% of Community goods (compared to 63% in its initial offer). The thorniest issue at this stage is the bilateral car trade issue. Figures for 2006 show a striking imbalance. South Korea sold 74,000 vehicles worth US$9.1 billion on the Community market last year while buying only 15,000 European vehicles worth US$1.6 billion. (eh)