Trade commission recognizes damage from EU FTA to S. Korean firms

Yonhap | 27 Sep 2013

Trade commission recognizes damage from EU FTA to S. Korean firms

SEJONG, Sept. 27 (Yonhap) — South Korea’s trade commission has recognized damage to five local firms from the country’s bilateral free trade agreement (FTA) with the European Union, the government said Friday.

In a meeting held earlier in the day, the National Trade Commission accepted claims from three local pork processing companies that have suffered damage from the growing market share of European suppliers, the Ministry of Trade, Industry and Energy said in a press release.

South Korea’s pork imports from Europe surged 11.2 percent to US$316 million in the first half of 2012 from $284 million during the same period in 2011, it said.

The Korea-EU FTA went into effect at the beginning of July 2011.

The recognition of damage from the Korea-EU FTA, or any other free trade deal, entitles the local companies to various types of government support, including a subsidy of up to 40 million won ($37,240) in consulting fees, as well as a low-interest loan of up to 3 billion won for equipment and facilities.

The commission has also recognized damage from the Korea-EU FTA to a local producer of hair dye and a manufacturer of paint.

So far, 40 local companies have claimed damage from the country’s FTAs, with 18 of them claiming damage from the Korea-EU FTA, according to the ministry. Out of the total, 30 have been awarded damage.

keywords:
source: Yonhap