Brussels, 13/07/2009 (Agence Europe) - Held up for several months due to the misgivings expressed by some of the big member states to opening up the European market on the conditions set by Seoul, the conclusion of the bilateral free trade agreement between the EU and South Korea is now on the right track. At the 133 Committee on 10 July, which was decisive for the future of the negotiations (EUROPE 9938), none of the member states rejected the compromise package found by the European Commission and the South Korean government for resolving the two key political questions that were hitherto blocking the agreement: duty drawbacks and rules of origin. A source close to Commissioner for Trade Catherine Ashton explained that some member states had, nevertheless, requested “more time” to examine the details of the agreement, as well as clarification, before they give their consent to having the agreement initialled between them and the South Korean government. Diplomatic sources indicated that Italy and Poland had expressed reservations about the agreement, whilst Germany, whose position was eagerly awaited (given that Berlin had put the brakes on the conclusion of an agreement for a long time because of the dangers to its car industry, which is already experiencing difficulties related to the economic and financial crisis), appeared “more positive”. In order to clarify the situation, the Commission will now translate the contents of the agreement into legal terminology, in view of initialling the agreement with the South Korean government in the autumn - “in September or October”, explained sources close to Ms Ashton. The formal process will then begin with the Commission's proposals submitted to the Council for its political approval. In the context of rules of origin, the EU has agreed to increase the level of foreign content in a finished product to 40-45%. The current level of foreign stakes in the South Korean car industry, according to the Commission, is less than 10%. Duty drawbacks, is a system through which Seoul enables companies that use imported materials for manufacturing a product for export, to claim back the import duties. A safeguard clause sets a permanent applicable ceiling on refundable duties in the event of significant rises in foreign content in South Korean exports. (E.H./transl.rh)