EU looks to increase chemicals exports to Korea

16 July 2007 09:45  [Source: ICIS news]

PARIS (ICIS news)--The EU and South Korea will begin the second round of their Free Trade Agreement (FTA) negotiations in Brussels on Monday, with the EU looking to increase its exports of cars, chemicals and business services.

 

The EU claimed an ambitious FTA between the two could increase its exports to Korea and Korean exports to the EU by 30-40%. EU-Korea trade reached €60bn ($82.68bn) in 2006.

 

The EU is offering 100% liberalisation of its markets if Korea makes a similarly ambitious offer and grants it substantial access to its growing market for automobiles, manufactured goods - including pharmaceuticals, chemicals, machinery and cosmetics - and business services. 

 

EU trade commissioner Peter Mandelson, who is leading the negotiations, will also call for Korea to remove restrictions on foreign investment in the country.

 

The EU is the biggest investor in Korea, with 45% of foreign direct investment (FDI) - $5 billion - coming from it last year

 

It wanted to focus the negotiations on removing non-tariff barriers and local regulations that made trade with Korea “unnecessarily complicated” and which “in some cases present greater obstacles than tariffs”, it said.  

 

Mandelson launched the negotiations with Korean trade minister Kim Hyun-chong in May 2007.

 

Significant EU exports to Korea include chemicals, machinery and transport equipment.

 

($1 = €0.73)

 

 

By: Philippa Jones
+44 20 8652 3214

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