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S. Korean firms urged to capitalize on EU FTA: minister
제목 없음
South Korean firms need to use the free trade pact with the European Union (EU)
as a chance to further improve their competitiveness in overseas markets, the
country's top trade official said Thursday.
The free trade accord, signed in October last year, will come into effect on Friday, paving the way for South Korean companies to tap deeper into the world's single largest economic bloc.
"In trade, there are definitely winners and losers. The remaining task for South Korean firms is to enhance their competitiveness not to lag behind," South Korean Trade Minister Kim Jong-hoon said in an interview with Yonhap News Agency.
The minister stressed local consumers are expected to benefit from the free trade pact, although they cannot enjoy a large amount of benefits at the moment.
"The deal will benefit Korean consumers with more competitive pricing and better quality of goods and services," Kim said.
Overall, the deal is expected to boost bilateral trade between South Korea and the EU by as much as 20 percent in the long term, according to earlier estimates by the state-run Korea Institute for International Economic Policy (KIEP).
The KIEP said the free trade accord with the world's largest economic bloc would help boost South Korea's exports by US$11 billion and its economic growth by 5.6 percent while creating up to 253,000 jobs over the long haul.
Under the deal, Seoul and Brussels would eliminate or phase out tariffs on 96 percent of EU goods and 99 percent of South Korean goods within three years after the accord takes effect. They have also agreed to abolish tariffs on most industrial goods within five years of the deal taking effect.
Meanwhile, Kim took a cautious approach toward a free trade deal with China.
"It's not good to speed up things, but both sides share the view that a free trade pact is needed," the minister said.
In April, top trade officials from South Korea and China agreed to create conditions for progress on a bilateral free trade deal.
Prior to that, the two countries completed a nearly four-year joint feasibility study on a possible bilateral FTA in May of last year and reached an agreement to exchange their views on sensitive issues.
Their bilateral trade reached $188.4 billion last year. Both countries are expecting the volume to top $300 billion in 2015, the ministry said.
In South Korea, there are growing calls for an FTA with Beijing as a similar trade deal between China and Taiwan has recently taken effect.
South Korean President Lee Myung-bak said last year that Seoul needs to consider an FTA with Beijing in order to keep up with other nations that have been adjusting to trade conditions stemming from China's rapid rise in the global economy.
China is the largest buyer of South Korean-made goods and has contributed to Seoul's sizable trade surplus in recent years, while South Korea is China's third-largest trading partner after the United States and Japan.
Date
2011.06.30
The free trade accord, signed in October last year, will come into effect on Friday, paving the way for South Korean companies to tap deeper into the world's single largest economic bloc.
"In trade, there are definitely winners and losers. The remaining task for South Korean firms is to enhance their competitiveness not to lag behind," South Korean Trade Minister Kim Jong-hoon said in an interview with Yonhap News Agency.
The minister stressed local consumers are expected to benefit from the free trade pact, although they cannot enjoy a large amount of benefits at the moment.
"The deal will benefit Korean consumers with more competitive pricing and better quality of goods and services," Kim said.
Overall, the deal is expected to boost bilateral trade between South Korea and the EU by as much as 20 percent in the long term, according to earlier estimates by the state-run Korea Institute for International Economic Policy (KIEP).
The KIEP said the free trade accord with the world's largest economic bloc would help boost South Korea's exports by US$11 billion and its economic growth by 5.6 percent while creating up to 253,000 jobs over the long haul.
Under the deal, Seoul and Brussels would eliminate or phase out tariffs on 96 percent of EU goods and 99 percent of South Korean goods within three years after the accord takes effect. They have also agreed to abolish tariffs on most industrial goods within five years of the deal taking effect.
Meanwhile, Kim took a cautious approach toward a free trade deal with China.
"It's not good to speed up things, but both sides share the view that a free trade pact is needed," the minister said.
In April, top trade officials from South Korea and China agreed to create conditions for progress on a bilateral free trade deal.
Prior to that, the two countries completed a nearly four-year joint feasibility study on a possible bilateral FTA in May of last year and reached an agreement to exchange their views on sensitive issues.
Their bilateral trade reached $188.4 billion last year. Both countries are expecting the volume to top $300 billion in 2015, the ministry said.
In South Korea, there are growing calls for an FTA with Beijing as a similar trade deal between China and Taiwan has recently taken effect.
South Korean President Lee Myung-bak said last year that Seoul needs to consider an FTA with Beijing in order to keep up with other nations that have been adjusting to trade conditions stemming from China's rapid rise in the global economy.
China is the largest buyer of South Korean-made goods and has contributed to Seoul's sizable trade surplus in recent years, while South Korea is China's third-largest trading partner after the United States and Japan.
Source: Yonhap News (June 30, 2011)