Brussels, 16/02/2009 (Agence Europe) - Despite progress since December, confirmed by the EU Trade Commissioner Catherine Ashton and South Korea's trade minister Kim Jong-Hoon in January, the European Commission is expected to have to postpone the 8th negotiating meeting over a free trade agreement (FTA) between the two sides, initially scheduled for early March 2009, which would postpone the signing of a deal initially hoped for April at a potential summit between the EU and South Korea. After several such meetings, Member State trade experts will again brief the European Commission's chief negotiator, Ignacio Garcia Bercero, on their expectations and issues at a meeting of the 133 Committee on Friday 20 February 2009. The eighth meeting in the round of negotiations between the EU and South Korea is unlikely to be held in the first week in March 2009, as initially scheduled, but new talks are under way to decide on a different date.
Launched in May 2007, the negotiations between the EU and South Korea are still in deadlock over rules of origin and liberalisation of trade in automobiles. Pressure from a section of EU industry and some of the big Member States has forced the Commission to postpone its plan, leaving little time to convince the EU Council of Ministers to back a highly controversial deal. Facing the current economic and financial crisis, some big Member States, led by France and Germany, are reluctant to endorse a greater opening of the EU market to competition from South Korea. The uncertain future facing the European car industry, sorely hit by the crisis, leads them to fear that a rise in imports of cars from South Korea would threaten jobs in Europe. On 6 February 2009, ACEA urged the EU Council of Ministers to reject what it described as a badly balanced deal proposed by the European Commission (see EUROPE 9834). The rules of origin and the system used by South Korea to financially support companies moving their factories to China is another major source of concern to several Member States. (E.H. trans fl)