S. Korea, EU to launch FTA talks

South Korean Trade Minister Kim Hyun- chong and EU Trade Commissioner Peter Mandelson formally announced on Sunday that the negotiation on a free trade agreement (FTA) between the two sides will be launched in Seoul on Monday.

Kim told reporters that he and Mandelson agreed to the launch of FTA talks earlier on the day and both sides expressed their will to make meaningful progress during the first round and conclude Korea-EU FTA talks as quickly as possible.

Kim said the first round of South Korean-EU FTA negotiation is scheduled for five days.

"As the chief negotiator for South Korea, I would like to conclude a deal with the EU within a year," South Korean Deputy Trade Minister Kim Han-soo said. He said that his government will focus on removing tariff and non-tariff barriers on merchandise trade during the FTA talks.

The EU sent a 22-member delegation led by Inacio Garcia Berceo, a director at the European Commission, to participate in the negotiation, local media said.

The EU is the second-biggest destination for South Korean exports after China and the largest foreign investor in South Korea with 40.4 billion U.S. dollars by the end of 2006. The bilateral trade volume was recorded as 79.4 billion U.S. dollars in 2006.

According to South Korea's Yonhap News Agency, experts predict the FTA with EU would boost by 36 percent South Korea's exports to the region, which totaled 43.6 billion U.S. dollars last year.

The EU can also expect to increase by 47.8 percent its shipments to South Korea which stood at 30.1 billion U.S. dollars last year, according to data by the EU's governing body, the European Commission.

South Korea hopes that a successful deal with the EU would help its big businesses like Samsung Electronics Co. and Hyundai Motor Co. reduce their heavy dependence on Japan for parts imports, Yonhap said.

South Korea has signed bilateral FTAs with Chile, Singapore and the Association of Southeast Asian Nations, excluding Thailand. It is pushing for a pact with Canada and set to conduct a second feasibility study on FTA pact with China this year.

Source: Xinhua