Korea, Peru sign free trade pact
Korea Times | 11-15-2010
Korea, Peru sign free trade pact
By Na Jeong-ju
South Korea and Peru signed a bilateral free trade agreement (FTA), Monday, which is expected to be implemented midway through next year after being approved by the parliaments of both countries.
The top trade negotiators from Korea and Peru, Kim Jong-hoon and Martin Perez, signed the pact at Cheong Wa Dae with President Lee Myung-bak and his Peruvian counterpart Alan Garcia, who arrived here Sunday on a three-day visit, in attendance.
At their summit, Lee and Garcia agreed to deepen bilateral ties in the development of energy and infrastructure in the South American country.
“Lee expressed hope that the FTA will improve the welfare of people in both nations as well as bolster economic and trade relations between the two countries,” Cheong Wa Dae said in a press release.
In response, the Peruvian President said he believes Korea-Peru relations will take a huge leap forward if the agreement goes into effect.
Lee asked the Peruvian government to support local companies seeking to participate in energy, natural resources development and infrastructure construction projects.
The two countries concluded negotiations in late August to abolish almost all tariffs within 10 years, paving the way for Seoul to secure a stable supply of natural resources from Peru and export more products such as automobiles and electronics.
Two-way trade volume totaled $1.56 billion in 2009.
Under the agreement, Korea and Peru are required to scrap tariffs on most items except for 107 agricultural and fisheries products such as rice, beef, onions and garlic.
Peru’s 9 percent tariffs on imported vehicles and electronics will be removed over the next decade. The 9-percent tariff on color televisions will be jettisoned as soon as the FTA takes effect.
Peru is the second South American country with which Korea has sealed a free trade pact. In April 2003, Korea signed its first free trade agreement with Chile.
On the sidelines of the summit, the two countries also signed memorandums of understanding on stepping up cooperation in the fields of science and technology, and environmental protection, according to the presidential office.
