Brussels, 03/07/2009 (Agence Europe) - The Korean Herald of 2 July reports that South Korean President Lee Myung-bak has said that the bilateral free trade agreement between the EU and South Korea could be initialled in July, when he visits Europe for the G8 summit in Italy on 9-10 July before travelling on to Sweden. Meeting at the bilateral EU-South Korea summit (see EUROPE 9906) in Seoul on 23 May, Czech President Vaclav Klaus, Commission President José Manuel Barroso and President Lee agreed to work for the rapid conclusion of the agreement. Negotiations were launched in May 2007, but had become deadlocked over two key political issues: repayment of customs duties (duty drawback) and rules of origin. On the sidelines of the OECD ministerial meeting in Paris at the end of May, European Trade Commissioner Catherine Ashton and her South Korean counterpart Kim Jong-Hoon in turn agreed to conclude the agreement “in the near future”. It remains for the Commission and South Korean government to bring forward a compromise that is acceptable to all member states. The matter will be on the agenda for the 133 committee meeting on 10 July. The Commission can count on the support of the Swedish Presidency, which sees the conclusion of the free trade agreement with South Korea as its trade priority along with the multilateral Doha Round negotiations. The traditionally free-trade supporting Sweden will, however, have to persuade the most reluctant large member states, which, especially in these times of economic crisis fear the impact of further opening of the European market, particularly the car sector. (E.H./transl.rt)