S. Korea has two-track FTA plan for entering advanced, developing markets: official
Yonhap 2007/09/14
S. Korea has two-track FTA plan for entering advanced, developing markets: official
By Lee Joon-seung
SEOUL, Sept. 14 (Yonhap) — South Korea has a two-track free trade promotion plan aimed at winning market access in both advanced and developing economies, a senior policymaker said Friday.
Vice Commerce and Industry Minister Oh Young-ho said free trade agreements (FTAs) with countries like the United States and those of the European Union can enhance global brand recognition of local products and fuel development of the service sector and management know-how.
"Such benefits can raise the overall competitiveness of the South Korean economy which is vital for sustained growth," he said in talks with representatives from business umbrella groups including the Korea Chamber of Commerce and Industry and the Federation of Korean Industries.
The policymaker also said at the meeting that FTAs with the developing economies of India, China and member states of the Association of Southeast Asian Nations (ASEAN) can boost exports. Exports account for a large proportion of South Korea’s economic growth and job creation.
"These developing countries maintain high tariffs that can be circumvented with an open trade pact," he stressed. Oh said removing or lowering tariffs is important for quickly securing market shares.
He also said that next week’s FTA talks with the EU will involve serious "give-and-take" between the two sides. He added that Seoul is aware of concerns related to the EU’s non-tariff barriers that could hinder free trade and would do its part to deal with such issues.
The EU has tough quality standard certification rules and environmental protection clauses.
South Korea and the EU will hold the next round of talks in Brussels from Monday through Friday.
"The emphasis will be on maximizing benefits for local companies and not speed," he told the business leaders.
South Korea currently has FTAs with Chile, Singapore, and the European Free Trade Association. An FTA with ASEAN regarding manufactured goods went into effect earlier in the year.
The government is asking lawmakers to ratify an FTA signed with the United States on June 30 and is seeking similar agreements with the EU, Canada, India and Mexico.
