Brussels, 10/01/2008 (Agence Europe) - The European Union and South Korea will hold their 6th session of talks towards a bilateral free trade agreement (FTA) from 28 January to 1 February, a week later than scheduled. “Both parties have agreed that more time is needed to examine the new proposals made by the other,” said the South Korean Foreign Ministry in a press release picked up by the Yonhap agency. While substantial progress was made in services and rules at the 5th session in Brussels, non-tariff barriers and rules of origin remain the main stumbling blocks between the parties (see EUROPE 9569).
Discussions have slowed as a result of a persistent disagreement over trade restrictions and technical standards for motor vehicles. The EU wants South Korea to remove its regulations on European car manufacturers and apply the international standards of the UN Economic Commission for Europe (UNECE) agreement. The EU has rejected Seoul's revised proposal on technical standards for motor cars, which includes a quota and a five-year period of grace for imported cars from European manufacturers. In 2007, South Korea, sold almost 74,000 cars, worth $9.1 billion, in the EU, but only bought 15,000 worth $1.6 billion. Tariff duty on car imports is 8% in Korea and 10% in the EU.
At the first session, the EU proposed the removal or phasing out of its customs duties on the import of South Korean goods within seven years, with a zero rate of import duty on 80% of these within three years once the agreement had come into effect. Seoul undertook to remove its import duties on 68% of Community goods (compared with 63% in its initial proposal) within three years. (E.H.)